This actually happened!
I recently got the June financial statements from a client who had subscribed to Financially Fit Business (www.financiallyfit.business). I always like to see financial statements to make sure they appear to be accurate before entering data into the system.
He forwarded the financial statements that his bookkeeping company prepared.
He didn’t look at them before he sent them to me. Obviously, the bookkeeping company, who he pays monthly to prepare accurate statements, didn’t look at them either.
When I got them, I went ballistic. It is not possible for this company to have negative revenues! This would mean that the company did NO work in June and paid his customers $219,000.
I called him. No, he didn’t look at them before he sent them. When I explained what they did, he knew the statements were wrong.
My client called his bookkeeping company. They had a flimsy excuse. He was relying on them to produce accurate financial statements and they obviously weren’t.
Financially Fit Business and I are helping him understand and interpret the statements.
Any credible bookkeeper would know that the P&L is wrong. It appears that the company didn’t care and just wanted to collect their monthly fee.
My client? He’s looking for an internal bookkeeper. I sent him my bookkeeping test and answers with a warning that if the candidate didn’t pass the test, he should not hire that person.
Email me (rking@financiallyfit.business) if you’d like a copy of the test and answers.
Moral of this situation:
Always look at and review financial statements for accuracy – whether they are internally or externally prepared.
Want a financial statement review?
Every business, large and small, can benefit from taking a closer look at its numbers. We’re happy to do a quick review – showing you what appears to be good and some areas you might want to pay attention to. (This is where Financially Fit Business can help too). Click here for more information.
And, pass along this offer to your business friends and colleagues who could benefit from this review too!
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Ruth King is well known as “The Profitability Master.” She is passionate about helping small business owners become profitable and stay profitable. For over 40 years she has coached, trained, and helped contractors and others achieve the business growth and goals they wanted to achieve.
Contact Ruth by emailing ruthking@hvacchannel.tv.
