REAL RESULTS
How Better Reporting Uncovered Approximately $150,000 in Annual Expenses
A real-world example of why the way transactions are reported can matter just as much as recording them.
The problem
Credit-card-related expenses were effectively being obscured by the way revenue and expenses were reported. The financial statements did not make the magnitude of the cost readily apparent.
The review
A more detailed look at the financial information separated the expense from revenue and made the underlying cost visible.
The result
The review identified approximately $150,000 per year in credit-card-related expenses. Management could then see the cost clearly and evaluate ways to address it.
The lesson
Accurate bookkeeping is essential, but useful reporting requires appropriate categorization and enough detail to help owners see what is really happening in the business.
Individual results vary. This example illustrates a past situation and does not guarantee similar savings for other businesses.