Validate Your Information

How often do you hear someone tell you something that seems incredible, only to learn later it’s not true? This occurs in both personal and business situations. Of course this makes sense as, whether we like it or not, personal and business get mingled together.

If it Sounds Too Good to be True

We’ve all heard the saying, “If it sounds too good to be true, it probably isn’t.” Of course this is a warning not to believe everything we hear. However, sometimes we are surprised that something actually is true that just seemed too good. As a result we may miss opportunities. The point is, whatever the source may be, it is often wise to validate your information.

Don’t Get Caught by Surprise

I’ve seen many times in business where someone thinks they have all their ducks in a row and are fully aware of the situation, only to be caught by surprise.

Surprise

It could be as simple as thinking there was a sufficient amount of a particular inventory item on hand to meet demand or that there was sufficient cash to meet expectations. Unfortunately, what you think you know can easily turn out to be incorrect all because of a failure to validate your information.

So What’s the Point?

The bottom line is that no matter how good your record keeping and how well designed your systems are, there need to be practices in place to check the validity of information. For example, you may have great procedures for tracking your cash, only to learn that a transaction occurred that you had not anticipated. This is one of the things that people are so often guilty of on a personal level. They may be looking at their checking account balance according to the bank on a daily basis and think this is adequate. However, there can be a transaction that suddenly clears the bank that they had forgotten about, such as an insurance payment. This is why it is so important to be recording activity yourself and then cross-checking with the bank’s information.

Whether it is the cash balance or any other piece of information, it is a good idea to have ways to validate your information. That is how you avoid unpleasant surprises.

If you are struggling to get dependable information, AimCFO can help you.

If you want to know more, contact AimCFO – Contact

As always, your comments are welcomed.

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