How often do you start reading a blog only to be disappointed when you realise that it’s all words and no content? Right now you might be hoping this is not another one.
Fortunately, most Australians are blessed with a finely tuned bullshit-detector and pick up on it pretty quickly.
Now, you might be asking what’s this got to with a bookkeeping website? You might even be thinking that bookkeeping is bullshit. Isn’t bookkeeping just about a bunch of numbers? Yeah, there are a lot of numbers involved in bookkeeping and those numbers have no real meaning unless we convert them to words. Then comes the question, are we making money? Hopefully, your numbers convert into the word.
The word ‘bookkeeping’ is quite old-fashioned and has lost its literal meaning. Although I’m sure there are some old die-hard techno-phobes still writing up their Journals. Lucky for us, those people are not likely to be reading this blog. So rather than speak of “bookkeeping”, we prefer to use the term accounting, which is not to be confused with the word accountant. At Escape Bookkeeping, we do not do tax returns and we do not give taxation advice! Ok, I think you see the difference. In our world, doing the books is not so much about ‘bookkeeping’ but it is accounting for all the financial transactions going on in the business, putting a dollar value on it, then transforming that information into words that can help us to make smarter business decisions.
Why bother with accounting? There’s the obvious reporting and taxation side of it but the real value in accounting is the information it gives back in real-time to help you manage and plan for your business. If you only use your accounting system for compliance reporting and taxation then you may not be getting full value from your accounting efforts and costs, and, you may be operating financially blind-folded to some extent. The numbers that you input transform into the bigger story of what is really happening in your business every day and can steer your focus towards matters needing more attention.
Now might be a good time to mention that ‘garbage in = garbage out’. Inaccurate input can leave you with a set of numbers that convert to a language that you don’t understand. What a challenge if you had to translate gibberish to the Australia Taxation Office.