Okay, it kind of depends on who you ask. But many executives and business leaders really do stay up at night trying to figure out the best ways to approach accounting and bookkeeping, in an era where data is king, and the always-connected digital world is a minefield for those in positions of responsibility.
Aside from the specters of ransomware and data breaches, accounting is among the top stressors of high-powered corporate types.
That’s partly because of the complexity that’s built into today’s accounting world. As we added software and new tools, the system evolved accordingly beyond any one person’s ability to balance a simple ledger.
So now, accounting is kind of a collaborative process. It takes a village, in other words, to correctly report enterprise numbers. You may have heard it said that numbers don’t lie, but in today’s complex environment, with so many ways to represent data, just getting to the root of finances can be bewildering and overwhelming.
Take taxes – one of the banes of the modern business person’s existence. Taxes are stressful for many different types of people, even someone with a relatively simple 1040. But there are specific tax fears that lurk in the minds of business leaders trying to maintain good accounting practices. With all of the rules around reporting, deductions, depreciation and more, it’s hard to walk that line between taking the advantages you deserve, and making sure that you’re not running afoul of either rules or norms in tax accounting.
It used to be that taxes were the most stressful part of accounting, but now other types of numbers are also becoming difficult to handle.
The industry has coined two words, capex and opex, that refer to capital expenditures and operating expenditures respectively. Even these have now generated their own complexity and potential for confusion, for example, where business types try to pinpoint the return on investment that they get from some purchased asset, project or initiative, and may find that the answer is more complicated than they had expected.
Find a Pro
You can’t magically resolve all of the problems that the complex business world has brought you overnight, but you can find dedicated and capable partners to help you manage business accounting.
Take a look at our teams at Jack Trent and get connected to a firm that has your best interests in mind. Accounting doesn’t have to be scary, and we want to help you get real confidence in your numbers!