Toptal

Entrepreneurs often view accounting like eating broccoli – they know it’s good for them but terribly unpleasant. The goal is to power through without gagging or thinking about it too much.

That is unfortunate because effective accounting is a quiet ingredient of business success. Articles on marketing and leadership steal the headlines, but rock-solid companies have a rock-solid approach to accounting, almost without exception.

I recently witnessed the virtual collapse of a promising company with a beautiful product line, a dashing website, and an owner who knew how to network. The major lack was a good job costing system to show the true cost of each manufactured product.

That is an extreme example. Most poor accounting decisions lead to subtle losses, not a fast disaster. They drain the enterprise slowly, which makes the leaks difficult to detect.

How can you tell whether your company’s approach to accounting is working or

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