“Why do all entrepreneurs always hate doing accounts?”

by Daniel Batten on March 6, 2010

Have you sometimes felt that it’s as if all entrepreneurs are hard-wired to detest anything to do with book-keeping, accounts payable, accounts receivable or tax?

I have seen one company spend a 40% premium to hire contractors because it didn’t want the admin hassle of doing PAYE tax returns.

I have seen another company grind their business to a stand-still by not doing basic accounts (OK, I’ll confess that was me back in the bad ol’ days)

I have seen another fail to invoice hundreds of thousands = 25% of their entire annual turnover because they “really didn’t like doing this”. Because of a recession, the sands of time, and other events, some of this money they never saw again.

I have seen another business fail to do tax returns on time, resulting in more paper work, wasted energy negotiating with IR rather than chasing sales, and huge late penalty fees.

Entrepreneurs don’t like and should never do accounts. Accountants should do accounts. The problem is most entrepreneurs try to save money by doing it themselves. Trying to save money is the wrong goal, and it leads directly to wasting money, time and energy. What a trifecta! Saving energy and time should be the goal. When you look to save energy and time, the money naturally gets saved, and even when it doesn’t directly get saved – your increased time and energy allows you to generate 10-fold more revenue than you could possibly save by doing accounts yourself.

So why do entrepreneurs all hate doing accounts? For the same reason you hate listening to someone singing off-key: we are using our gifts in the wrong way, and this strikes a sour chord at the core of our being. We are telling ourselves we don’t truly value our gifts and area happy to squander our finite time on this planet doing things we should never be doing. Moreover, our tanks soon hit empty because we have been energetically depleted by doing something we should never ever be doing.

You cannot afford to not get your accountant to do this. Ask yourself the question “How can I save my precious energy and time, trusting that money will be saved/generated?” If that’s too much of a leap of faith and you feel you must still focus on the money-saving as the primary objective then ask yourself “Who other than me can I cost-effectively get to do my accounts, while I provide nothing but guidance?” If you believe you can’t afford an accountant , get an accounting student. Do something – just stop doing things that sap your energy, or your business will never fly.

Leave a Comment