Should Entrepreneurs Study How to Fix a Car or How to Drive a Car?
Should entrepreneurs study how to fix a car or how to drive a car? This was a question posed by San Rithy, the Managing Director of BSE Accounting Co. Ltd, to all entrepreneurs who participated in an event, called Financial Modeling 2020.
Picture an image of a modern car. How does the image of a modern car relate to your organization/company’s accounting system? After the question had been posted to the crowd, one of the four entrepreneurs promptly responded, “This modern car is beautiful, but we do not need to study in detail of the car’s composition. What is most important is you can start the engine and drive it.”
Mr. Rithy added on to the response by comparing the car to a company’s accounting records and a car owner to an entrepreneur. As an owner of a business, should you do the accounting records yourself or should you just review the records to understand the current condition of the company?
Accounting is a technical skill, so the owner of the car must possess some basic understandings of how to fix a car. However, if it’s broken beyond the owner's ability, then it should be fixed by someone whose expertise is fixing cars.
He further emphasized that as an owner of a business, you do not need to do the accounting records yourself. It is rather important that when the accounting records are on your table, you are able to comprehend it and know the situation of the company. An entrepreneur is responsible for leading the company forward so it is best to spend your time doing jobs that require thinking instead of you actually doing it.
By: Moeun Kimyan