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

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.
from The University of Michigan
from University of Southern California in Los Angeles, CA, USA