What rarely adds up
Your accountant keeps the books for the SAT, the tax authority. To make decisions you need to read those same numbers differently.
It happens most in construction companies, contractors, factories and workshops, where there is always work in progress.
- Unbilled production
- Finished work that hasn't been invoiced or recorded yet. One month looks bad and the next one looks too good.
- Expenses in the wrong month
- They're recorded when they're paid, not when they apply, like the year-end bonus or an annual insurance policy. So no month shows what it really cost.
- Investments recorded as expenses
- The machinery you bought shows up as one month's expense instead of being spread over the years you'll use it.
- Numbers that don't match
- The operations spreadsheet says one thing, the books say another, and nobody knows which to trust.