Every business owner has a big vision for their company and wants to make it happen. However, most don’t follow a unified strategy to get there. Leaders often have trouble pulling the trigger on spending money on people or new strategies because they don’t understand what their numbers are telling them.
Many business owners haven’t fully appreciated accounting as “the language of business”, as Warren Buffet states. It’s seen as a necessary evil to pay bills, invoice and collect, and provide monthly accounting statements. Often, owners take a glance at the P&L to be sure they’re making money, without a look at the balance sheet or the cash flow statement. Instances like this are what makes accounting the number two weakness in growing firms in my experience (the number one weakness is marketing, but we’ll save that for another day).