Numbers Game

Headline: “Autodesk Inc. reported its revenue for the fourth quarter on Tuesday, and also said it will restate financial results for past years.

The San Rafael company (NASDAQ: ADSK) hasn’t reported its profit or loss in recent quarters because it is looking into its stock option grants to employees. On Tuesday, the company said it will take a pre-tax charge of between $38 million and $45 million for the past 18 years because of such grants.”
Article

What’s the big deal? It’s only $7 million, give or take.

I know that I underestimated the importance of keeping good records for many years. “Just show me a growing topline” was my mantra. I focused on growing sales, achieving operational efficiencies, and growing the bottom line.

As we’ve grown, I’ve come to appreciate the importance of really good record-keeping. It serves (at least) two functions: giving the management team the context we need in order to run the business well; and keeping us out of trouble.

If nothing else, pay an outside accounting professional for a few hours of expertise reviewing your books and accounting procedures. Ask them to point out any serious deficiencies in your accounting systems. This is not an audit, just a quick once-over that will probably save you a ton of time down the road.

Entrepreneurs tend to underestimate the importance of keeping good records. Don’t make that mistake.

Total
0
Shares
Leave a Reply
Related Posts
attracting and retaining employees
Read More

13 Employee Development Programs for Startups to Invest in

To provide insights on the most effective employee development programs, we reached out to thirteen startup leaders, including founders and CEOs. From investing in communication training to utilizing Pluralsight for technical micro-courses, these leaders share...