wait and see

When leading a business, some things will be presented to you. Some of these things that will be presented to you are hard to come up with by yourself. Other things aren’t.

Suppose your accountant only presents you with a quarterly overview. In that case, there is a substantial chance a (un)pleasant surprise took place throughout the past three months. Typically not something you want to be confronted with once every three months. Ideally, you enable you and your company to consult a real-time overview at all times.

Control what you can control.

accountant’s power

Good accountancy can make or break a business. However, I often see companies falling into a trap, set up — unconsciously — by their accountants.

Let’s say there are two ways of approaching this challenge. Either tell the accountants what to do or have the accountants tell you what to do.

Suppose the accountants make demands about how the rest of the business should organize their processes to facilitate optimal bookkeeping. In that case, there is a chance that the rest of the company will suffer. Maybe the applications used for accounting don’t allow for integrations or real-time reporting. Now the business is stuck between a rock and a hard place.

If, on the other hand, the business enforces the accountant(s) to work in a specific manner, accounting itself might suffer tremendously. Maybe they didn’t consider some fiscal laws. Needless to say, the business is still stuck between a rock and a hard place.

Bad accounting is a one-way ticket (on a bullet train) to entrepreneurial hell.

Not all things and processes are suited to be designed by a commission. Accountancy, however, because it’s very determining for the success of a business, is something where all parties should be involved. Different people and departments should have a say, preferably as early as possible, throughout a company’s lifecycle.