4.8 • 31.3K Ratings
🗓️ 9 October 2023
⏱️ 4 minutes
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0:00.8 | There is a reason that financial audits take place, right? |
0:07.2 | And there's a reason that they are always run by external accountants. |
0:14.1 | Because the people in the business, the internal accountants, in this case, |
0:21.4 | they have a tendency either consciously or unconsciously that they might |
0:28.2 | try and make themselves look good, right? Just do little adjustments. They're going to adjust some |
0:34.4 | numbers. They're going to round up some incoming revenue. Maybe they're going to round down |
0:40.4 | some expenses. They're going to move some costs to the next quarter. They're going to forecast |
0:48.4 | some payments that might happen in the future as if they're going to happen 100%. |
0:54.0 | And you add all these little adjustments together and things start to look pretty good. |
1:03.7 | Things start to look pretty good. And at a minimum, they look better than they really are. |
1:11.6 | At a minimum. And that leads to problems. That leads to problems. Little problems at first, |
1:20.4 | but big problems in the end. If they go unchecked, if they go unchecked, we're talking about bankruptcy |
1:27.2 | and foreclosure and insolvency. So that's what happens in a company. |
1:36.4 | But this can happen with us as well in our heads. We make little adjustments in the way we report |
1:44.7 | things to ourselves. That's what we do. I mean, I'm in pretty good shape. |
1:52.9 | I'm not drinking that much. My financials are good. I don't waste too much time. I don't really |
2:02.2 | need to train today. My husband or my wife or my spouse or my kids, they won't mind just this once. |
2:10.6 | That's what we do. Little lies. Little adjustments to the truth. |
2:21.9 | Just to get by. Just to just to make ourselves feel a little bit better today. Just so we look good |
2:29.2 | to ourselves. But just like a lying accountant. And by the way, the lying accountant |
2:39.6 | has good intentions, right? They're not a bad person. They just want the company to look good. |
2:44.8 | They want the company to feel good. But by trying to make the company look good and trying to make |
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