No Financial Statements You’ve Ever Read Were Right. Good!

You may be surprised it’s highly unlikely that any financial statements you’ve ever read are exactly right. Don’t fret, this is for your benefit, in two ways.

First, the numbers in financial statements are often rounded to the nearest thousand or million. Imagine the profit is $10,236,987.12. There’s a lot of irrelevant detail there so we round the numbers, in that case to, say, the nearest thousand – $10,237. Isn’t that easier to read? You really don’t need the cents, whole dollars or even the hundreds. The thousands will do and it’s highly unlikely that any decisions you make will be affected.

Second, when preparing financial statements, if an immaterial amount is omitted, so what? Say an invoice for a cost of $1,000 was missed so the profit above, when rounded, was actually $10,236. Likewise, that won’t affect any decisions you make but it does enable us to produce accounts quicker for you. (Of course, the missing $1,000 goes into the next period’s accounts).

So, by not sweating the small stuff, accountants make accounts easier to read and produce them quicker so you can get on and run your business sooner and more easily. It’s all about you.

Now tell me that accountants are uncaring and unfeeling. 😊

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