The first myth about having an adequate accounting system for your SBIR award is that excel is enough to do all of your accounting. No way! Think about it. You’re accumulating data (transactions) each time you make a purchase, sell a product, perform research, pay a bill, etc. It seems logical to just list your transactions in a spreadsheet and send it over to your accountant. The problem is that you can’t generate internal financial information needed for financial feasibility, tax returns, etc. because this data needs to be manipulated to provide what you need. In other words, you generated data that does not give you what you need and now you and your accountant need to spend more time reconfiguring information to serve a purpose. Excel does not make an adequate accounting system given the requirements specified by the government. Sure it’s easy, but it will cost more than you think.
This is the first of our SBIR Accounting Myths blog series. George Moker is a CPA and an entrepreneur who brings a real approach to managing the accounting needs of your firm. George created this series of blog posts to his more than 30 years of small business and startup experience in an attempt challenge the myths about an adequate accounting system and its importance within your organization.
For more information on how we can help with your SBIR accounting needs, please visit us at www.mokercpa.com