When it comes to bookkeeping and financial reporting, truth is king. Well, let’s not disregard the adage “cash is king.” Perhaps this money monarchy is big enough for two kings to share the stage.
Bookkeeping is financial story-telling. Each set of books tells a story about that particular business – where it’s been, where it is now, and where can or can’t afford to go.
But what if the numbers weren’t accurate and the story was built on a false premise. Any action taken by the owner would likely result in a bad turn and an even worse outcome for the business.
Great bookkeeping tells the story of opportunity, success and potential. Misdirection, inaccuracies, and confusion tell a story that reveals a lack of bookkeeping, poor detail or flat out neglect of financial records. Can you say “horror story”?
Can all financial books have a happy ending? I like to think so. Books that depict reality gives focus, clarity and enable the owner to plan for the future.