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Small Business Bankruptcy: Not a Numbers Person?

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Editors Note: This article from the New York Times: Help I’m Not a Numbers Person should be required reading for all distressed small business owners. The lesson here is that before one starts a business, it can be critical to understand basic accounting. And don’t even think of using the “I am not a numbers person” excuse. Business owners do not have the luxury of pleading ignorant to one part of the business, whether it’s accounting, management or marketing.

Here is an excerpt from the article:

Many people think that they can relegate their accounting responsibilities to an outside accountant. The problem is, it has to be the right outside accountant for them, depending on their needs. And that’s the trap.

Many entrepreneurs don’t know what they need. They view accounting fees as just another expense. But like many things, you get what you pay for. If you recall, she is paying $75 a month for her bookkeeping and accounting. How much advice do you think she should be getting for $75 per month? Right. And that’s about what she got. This is not really the accountant’s fault, and this is not an uncommon situation.

It happens every day to people with more guts than money. The lesson here is that before one starts a business, it can be critical to understand basic accounting. And don’t even think of using the “I am not a numbers person” excuse. I know that’s easy for me to say — I am a numbers person – but, trust me, I have had plenty of other areas that I have struggled to learn.

Business owners do not have the luxury of pleading ignorant to one part of the business, whether it’s accounting, management or marketing. This is at the heart of why the failure rate is so high for start-ups. You seldom, if ever, hear owners say they failed because they didn’t meet the accounting, marketing or management needs of the company. Instead, they usually blame the bank, the government or the stupid partner.

Entrepreneurship, first and foremost, is about accepting responsibility. 

To read the two-part article in its entirety, click here.

If you are a stressed-out small business owner in need of options, contact Cossitt Law and we will help you untangle your most complex debt issues while protecting your best interests.

 

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