LESSON 4: Why you must understand enough about books an Articles

LESSON 4: Why you must understand enough about books and accounts for your business to become the dream-machine it can be

It is a shocking fact that even in this age of widely available business education and of sophisticated software, most business owners continue to be caught out by their ignorance of fundamental financial processes. And surprisingly I do mean ‘most’ business owners. If you have any difficulty accepting that, just remind yourself of the business […]

4.1 The three reasons why it is imperative you invest a few hours, or days at most, to gain a life-long understanding of elementary books and accounts

Firstly let’s get one thing straight. Unless your business is very small at the moment you should not be doing your own bookkeeping, nor should you be preparing your own management accounts. It is a misuse of your time. However, that certainly does not mean you can forget all about your books and accounts, as […]

4.2 Delegate and reap the rewards of efficiency, but do not abdicate and disintegrate into chaos

 Delegation is where you know what has to be done and you have sufficient knowledge of the task to pass it on yet you still retain responsibility for it and control over it. Abdication is where you have little or no idea of what it’s all about and you just wash your hands of it […]

4.3 The wonder of accounting software

Let’s now consider at some length something closely linked to delegation. That is the use of accounting software. Accounting software is the most incredibly useful innovation. I remember the days before the PC, when just a few large and forward-thinking companies were investing hundreds of thousands of pounds installing ‘main-frame’ computers, and everyone else including […]

4.4 Why it is suicide to blindly put your faith in accounting software, and the simple secret to making it your infallible oracle

 The fact is, despite sophisticated software packages, many businesses have problems with their books. If you think your books are being kept properly simply because you have a leading accounting software package, you would be wise to review other evidence to verify whether your confidence is justified. An accounting package is just a tool, albeit […]