How Your Accountant is Screwing You
One of the first things I started to identify early in my business was that I was losing money. At first I didn’t believe it because we were so busy. But I was getting these reports and finding out that I was losing money, I was literally going backwards.
I needed to work out what was actually going on and where I was losing money. The accountant was screwing me because they set the whole system up from the start to make it as easy as possible for them. So they can do their side of it easily – it’s black and white, click a couple of buttons, run a couple of reports, pay your PAYG, pay your tax, here’s your IAS statement, and here’s your invoice for our work completed.
I started scratching my head trying to actually work out where I was making and losing money. But I couldn’t! It was kind of like I had this big bucket and all my income was coming in from different revenues and stuff was going out as expenses, then I’d be left with the profit.
That’s a terrible way to run a business – when you don’t know what’s making you money and what’s losing you money.So I took my accounting by the horns and started to dissect my business and break it up into individual little income streams with individual coding and reporting. I did that so I could find out what sources of those incomes were actually making me money and which ones were losing me money.
That makes more work for your accountant – so you can see why they’re trying to screw you by making their life easier and your life harder. When it comes to steering the ship, you’re in control. You’re at the wheel. So you need to see exactly where you’ve been and where you’re going.
The only way you can do that is with proper technical reporting and proper accounting coding that’s set up from the day one.