When facing a decision, would you rather have BAD information or NO information?

Given the choice between basing a decision on bad information (that I didn’t know was bad) or no information, I’d rather have no information. I would rather know I’m working blind, than to have BAD information that blindsides me.  

Do you rely on financial reports to make business decisions? How confident are you in your company’s financial information?

We can help you avoid several common errors that result in company financial statements not reflecting what is really going on in the business. Here are some common things I see that result in BAD financial information.

• Missing or duplicate transactions from incomplete account reconciliations
• Using cash basis when accrual basis should be used
• Loans or payables not being recorded
• Non-business expenses being recorded as business expenses
• Improper accounting software setup
• Accounts receivable not being recorded until received
• Banking or credit card accounts being excluded
• Loan payments being misclassified
• Inaccurate inventory valuation or tracking
• Asset purchases not being recorded, or being recorded incorrectly

 If you are going to take the time to review your company’s financial results, you ought to have confidence that the information is accurate.