I know someone who lost over $400K in 1 YEAR and was considering bankruptcy

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October 28, 2024

by a professional from The University of Texas at Austin - Red McCombs School of Business in Austin, TX, USA

All because they did bank balance accounting. And you probably do, too.

Bank balance accounting means you make decisions by just checking the amount in your bank. You don’t have a financial plan that shows you the money going in on your business for the next 13 weeks.

When I see companies using the bank balance money, they usually have a bookkeeper who's part-time and doing other things and the business.

Bank balance accounting keeps you up at night and hurts your business.

Instead, get a professional accountant to do bookkeeping, give you monthly financial statements, and show you changes in the company's finances so you can track how much you have to cover bills, know when you have money to buy additional assets, and can fall asleep knowing you can pay your staff.

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Reply by a searcher
from The University of Michigan
Great cautionary tale. Following for more.
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Reply by a searcher
from University of Southern California in Los Angeles, CA, USA
Thanks for sharing
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