Published by
Dan Isard
on
Dan Isard
on
Most small business owners do not understand accounting. You do not have to comprehend the complex intersections of the general ledger, the balance sheet and the resulting income statement. Many think that the reason to do accounting is to file accurate tax returns. Accurate tax returns are important, but the reason to do accounting is to have the data to know what is driving or impairing your business.
The bigger issue is that it’s more important to look at business operations than going through the motions of completing a tax return. With up-to-date financials I can see if a business is hitting its budget, and if not, why not. If it is exceeding the budget…