Accounting…it’s all so…boring.

It is hard to argue the above statement. Even to an accountant, accounting can occasionally be boring. Sometimes, it can be quite interesting–fascinating, even. Nonetheless, ignoring accounting can be deadly to your financial health. It is the single most important component in measuring your liquidity–your very financial survival. But why is it so often disregarded? Shunned? Shoved aside? Not fully understood by those with everything on the line?

Bottom line: accounting just is not a priority among many individuals and business owners. The fact is, it should and must be one of your highest priorities. It does not matter whether we are discussing personal financial affairs or a multi-billion dollar business–accounting tells all. It tells you where you have been, where you currently stand, and, if done properly, provides a very reliable indicator of where you are heading.

Why?

One of the primary reasons I have encountered for why accounting is not given the priority it deserves and requires is the fact that people simply try to do too much of everything on their own. Perhaps it is a lack of funds. Maybe it is a matter of not wanting to relinquish control. Despite our best efforts, we do, in fact, have limited time, knowledge, and resources. To help solve such issues, people must turn to others. A lone wolf cannot survive, but a pack can thrive. Sorry to be the bearer of bad news–none of us have superpowers, and therefore do have to rely on others, whether we like it or not. We all seek out medical assistance. Lawyers are hired. Mechanics perform maintenance and repairs on our vehicles. So, why are accountants and CPAs not utilized with the same frequency?

Secondly, facing reality can be difficult. Often, it results in having to make critical decisions you do not wish to make. Such changes can be life altering for you or someone else, and so it is easier to just sweep the issues under the rug. Proper accounting shows the truth. We can run, but cannot hide. The truth always catches up to us. Is it not time to take and retain control of your financial affairs by knowing, understanding, and better controlling your financial truth? Accounting reveals the truth of your finances.

How?

Accounting and CPAs can make a world of difference to you, individually and in business. More than ever before, a paradigm shift is occurring within the accounting industry, going from being predominately accounting and finance gurus and number crunchers, into more value-added information managers and data miners. As a result, CPAs are becoming increasingly involved in every facet of a business, not just financial, in an entirely new way. It is to obtain and retain competitive advantages, profitability, and market position. It is all for the sake of being able to better measure and manage everything. Let’s face it, there really is not much that accountants cannot and should not be involved in. Just think, almost every…single…facet…of your life and business, is directly or indirectly influenced by accountancy because every facet of life is influenced by finances.

Some advice:

Focus on your core competencies and do not risk spreading yourself too thin. Spreading yourself too thin is a recipe for disaster. I cannot repeat that enough, and would love to copy and paste that ad nauseam. Bring in others to provide their own competencies. By working with professional accountants, you may just be unstoppable in your endeavors.