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How do errors in financial statements impact your business?
One of the most common beliefs that we came across has been that small businesses and startups don't need accounting. They can handle their accounts by themselves. It's quite a widespread myth about small businesses. No matter how popular this belief is, it's a harmful one and has the potential to risk the survival of a business. Accounting presents the company with financial statements. These statements are used by various stakeholders and the management to make well-informed decisions. In the absence of the right accounting practices, these statements may be flawed and result in risky decisions. At the same time, it may harm the image of the company as well. One of the major causes of flawed reporting is the misinterpretation or lack of information. Let's not forget human errors. So how does this impact your business? When your numbers are wrong, your cash flow doesn't present the right picture as well. Businesses, especially small businesses, are prone to making such mistakes and falling into the trap of imprecision, hindering business growth. Accurate numbers are important to make the right strategic decisions. Companies need to present correct data to banks and other institutions to perform business operations. When the management sees an unclear picture of the company due to mistakes in financial statements, they end up making decisions that place a heavy burden on the company's financial health. In another scenario, they may not be able to utilize the opportunities to expand or grow, thinking that the company is not ready to handle such a change. One of the biggest downfalls due to incorrect numbers is the loss of potential business partnerships and customers. Small businesses believe that accounting costs a lot, but they forget that inaccuracy can cost them even more. Most of them have their accounts handled by someone who has little to no experience in accounting and bookkeeping. They require a proper accounting system and channel. They must adhere to generally accepted accounting principles to avoid any time-consuming activity and eliminate any threat to their business health.
What you can do?
If you do accounting manually/using spreadsheets, give accounting applications a try. McLedger online accounting comes with advanced technology combined with expert and qualified accountants who work on your data, giving you flawless reports. You can communicate with them at any point through your app regarding your reports. With the expertise of our accountants, we give you the luxury of time while providing you with the exact information that you need to make any well-reasoned decisions, even at the last minute. We ensure your bookkeeping has a strong team that takes care of everything without putting you through any trouble. We understand that you may have certain hesitations in switching to an accounting platform. That's why we provide a complimentary consultation and take time to understand your business and its needs. You can give us a call today on +971565472460 or email us at info@mcledger.co
