As a startup it’s easy to get so caught up in the excitement, the product, the service and the marketing that you forget to focus on some of the fundamentals of beginning a business. Getting these foundations right though from the start, will serve you well as you progress on your business journey and down the track you’ll thank yourself for it.
You see accountants are like doctors – they’re everywhere but just as there are many different types of doctors – such as general practitioner, paediatrician, psychiatrist, oncologist, ophthalmologist, etc – in the accounting profession there are also different types of accountants too – such as in-house company accountants, management accountants, tax accountants, financial accountants, cost accountants, forensic accountants, and the list goes on.
If we go back to my previous analogy of Accountants and Doctors we can go a step further and say that bookkeepers are like nurses, and they do the day to day work such as raising invoices, paying bills and processing payroll but it is the accountant who ensures the allocations are correct, prepares and interprets reports and ensures all the compliance requirements are being met.
As an accountant I see many Small Business partnerships go pear-shaped and whenever a client asks me about going into partnership, my most common recommendation is don’t do it.
You see money brings out the absolute worst in people and makes even the nicest people turn ugly. Although we can anticipate and even plan for differences, it’s often not until we are faced with very real money decisions or when money really becomes tight that those very ugly traits surface.