Measure Twice, Cut Once
Don’t think that because you now have an Accounting System, that you are now an Accountant it is just not that easy. Yes accounting software has become intuitive and the process is getting faster.
But do not take Accounting and your Accountant for granted, it is a complicated system that eventually is used to prepare your GST returns, Annual Income Tax and to substantiate your annual income for external lenders.
Getting your accounting right is about you working with your Accountant to prepare accurate Financial Statements (Profit & Loss, Balance Sheet and Cash Flow Statement).
Accounting like many Professions and Trades is all about getting it right the first time. Fixing problems is time consuming and expensive, firstly because you must find the problem, understand what has been done, understanding why the mistake has been made and then correcting the mistake.
Accounting is no different from any Trade when you understand this saying
“Measure twice, cut once”
Building your Accounting Skills.
As an accountant and business advisor my goal is to increase the skills of my clients on how to effectively use their accounting system. Typically, I will invest more time in the first six months with a new client than is financially advisable. Why then would I over invest in a new client.
The reason is really quiet straight forward if you stop concentrating on charge out minutes or return on investment. Building a relationship with a new client is critical, I don’t just want to be their accountant, I want to be their Accountant & Business Advisor. I want to understand about how their business works, what they want from their business and finally I want to find if the current accounting software is being used correctly and Accurately.
During this process of client On Boarding Good for Business focuses on building the Business Owners knowledge of Accounting, Coding, Reporting and getting the right systems in place to make the Financial Statements Accurate.
Make time to talk to your Accountant, don’t leave your questions to the end of the year, ask questions, ask for feedback on how you are managing your Accounting Subscription. Watch some of the stunning u tube clips on Xero.
You may not ever want to be an accountant, but you do want to be a better business owner, make sure you aim to increase your knowledge about Accounting in 2018.
Our next Blog will be on Accountants Jargon.
Stewart is the Founding Partner at Good for Business, Accountants & Business Advisors.
As a Chartered Accountant and MBA graduate Stewart is able to give business owners clear insight into their business built on his experience as a Chief Financial Officer and Financial Controller in some of New Zealand’s Iconic companies