AmiSight 2/18: One of the Costs of Bad Accounting
A prospective client called last night who is having problems with her factoring company – and she wants to change quickly. Here is the problem: she has grown rapidly and fast and has no accounting systems in place to back her up.
Sure, I could try to replace her factor and make a nice commission in the process, but that doesn’t solve the problem. She is building her house without a foundation, and it’s catching up with her.
With a sound accounting system in place and proper reporting, we could probably move her away from selling invoices to an asset-based line or straight line of credit at a fraction of the cost. But we are stuck until she gets her accounting in order.
How confident are you in your accounting systems? If you have to think about this question for more than a second, it’s time to deal with your problem!!!