Accounting is a word and a process heavily associated with the finance and business sector. While it is easy to assume that every entrepreneur, businessman, and manager, would be an accounting genius and financially savvy, that is not always the case.
Many entrepreneurs are not actually able to understand and fully comprehend financial information. The thing is most entrepreneurs are involved heavily in conceptualization, marketing, and other business operations. However, most entrepreneurs lack in terms of financial analysis and are unable to spot issues in their business when they crop up. Here’s why most entrepreneurs are allergic to accounting:
Not Looking Forward to Number Crunching
It’s understandable why entrepreneurs feel wary about accounting because they may not have studied this subject in-depth. While some entrepreneurs do take business courses with basic accounting subjects, these do not suffice for the complexity of the accounting field, especially since it affects taxation.
Moreover, many entrepreneurs aren’t even business grads. Even social scientists, chefs, and other professionals and individuals can start a business and engage in entrepreneurship. And let’s face it, not everyone enjoys number crunching or has the aptitude for math.
While many entrepreneurs may be lacking in skill for financial analysis, the cause for not enjoying accounting and finance analysis is it can be tedious to do bookkeeping and auditing. On top of that, many entrepreneurs are simply unequipped to understand the concepts behind each part of the accounting cycle. It is not that they do not care – they do, and they must for the success of their businesses.
It is simply because there is often a disconnect regarding the financial aspect of the business. In addition, financial reports are written in a language of their own, and graphs look like doodles to an untrained eye. But just because you hate accounting and bookkeeping doesn’t mean you ought to neglect it.
Tips to Solve the Problem
If you are one of the many entrepreneurs who struggle with keeping up with their finances, do not worry. All hope is not lost! Just because you hate accounting or bookkeeping doesn’t mean should let go of these tasks.
Doing so can lead to the demise of your business. Foregoing your books could be a one-way ticket to failure. Here are some simple tips to help you understand your finances better and use this knowledge to achieve your business goals.
1. Consult Google
There is a multitude of resources online that are free and easily accessible. If there are certain aspects of business finance and financial reports that concern or confuse you, do not hesitate to look them up. There are articles and easy-to-understand videos online that can aid you.
2. Join online communities
You are not the only one. There are many entrepreneurs and individuals who are and may just be going through the same circumstances as you are. Learning becomes a lot easier when you have a buddy or a community to hold you accountable. Consider joining online entrepreneurship and finance communities. There, you can raise your questions and clarifications on anything you may need help with. You can also work alongside your team so that you all gain financial knowledge as a group.
3. Enroll in a course
Thanks to technology, you no longer need to spend hours physically present at a university learning about finance and financial analysis. You can now easily do so from home. Platforms like Coursera, edX, and other certificate issuing platforms provide both short and long-term courses on finance, economics, and business. These courses are designed to teach you everything you need to know about business and financial analysis in detail. Plus, the certificate courses can be added to your LinkedIn profile and resume. There are also some universities with online programs and courses that you can enroll yourself in.
4. Engage in conversation with your accountant
If you have an accountant, whether in-house or outsourced services, know that they are also a valuable resource to your company. Apart from being there to guide your decisions, they are also experts in the field of financial analysis and accountancy. If you are inclined to learn more about the accounting process and how to better understand financial reports, reach out to the professionals around. Ask your accountant to explain each figure if you need them to. Chances are, they would be glad to help you out.
If you need help, don’t hesitate to call our team for assistance. We can do the tedious work of accounting and bookkeeping on your behalf. Let us be your partner in ensuring your company’s optimal fiscal health while working hard to ascertain you’re also tax compliant. Take advantage of our free 30-minute consultation.