The title of this quick post says it all.
It’s really important to understand your business accounts, and be familiar with your responsibilities as a company director. You need to know your responsibilities towards your shareholders if you have any. You need to understand tax. If you don’t something may come and bite you hard on the ass in the future.
I’m not suggesting you go and study to be an accountant, but you should know what your responsibilities are.
So many times I hear of people saying “Oh I don’t know! I leave that to my accountants”. Well I’m afraid you can’t do that. If there is ever a problem it is your head that will be on the chopping block, not your accountants’.
It’s also vitally important you check through your financial accounts before you sign them off. Again, it is your responsibility, and it isn’t hard – it’s part of running a business. Even if you have a quick read through and question a few things that you don’t understand, it really is worth it.