Wednesday, September 2, 2009

Bookkeeping

I currently outsource my bookkeeping and accounting. I am satisfied with my process, but lately I have wanted to learn Quickbooks myself. This story I heard over lunch yesterday just further stimulated my query. I want to have more oversight and understanding at least with the Quickbooks and Bookkeeping process. This Entreprenuer wants to avoid bankrupty like my lunch partner.
I have a great lunch yesterday with a colleague named "Steve" who is also an Entreprenuer and has had a business for over 25 years. We were having a casual lunch when I said I was just on the phone with someone who hopefully was going to teach me about Quickbooks. I explained that I had tried to take a free class at a community college, reading about it from books at the library. I have done every bootstrapping technique I knew. I am giving in and trying to find someone who can personally instruct me.
Steve: I think that will be a good use of your money. I wish I had tried to control and oversee my finances more in the beginning. My business was near bankrupty because of my accountant.
Me: How did that happen? Aren't they accountable?
Steve: No, they are able to be released from any liability or penalties.
Me: I had no idea. I thought if something went wrong they were responsible.
Steve: I now receive waivers from bookkeepers and accountantants stating they are not liable. I had an accountant for 10 years who I trusted and believed was keeping everything on track. Everything was going great. The business was seeing healthy returns. Then one day I opened my mailbox and had a notice that I had not filed with the IRS.
Me: No way.
Steve: It stated I had not paid for 4 years. They had not received anything. At this point I was employing 3 people, and my balance was well into the six figures. I then contacted my Accountant. I was told she was not responsible and that I would need to find another accountant. Her name is June and she works in Kansas. She hopefully is not practicing anymore. She told me a story about how she had multiple personalities and that she was assaulted so she is technically not at fault. I have spent five years and doubled my bill, and I still receive IRS Statements. I would not trust anyone else with your finances.
Me: I guess I will try to get this figured out as soon as I can.
Steve: You can make mistakes but at least they are your own. I nearly lost my business because of poor accounting.

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