We believe that it is absolutely normal not to know anything about the back-office when you are a businessman. But at the same time, the back office must run like clockwork. Otherwise, the situation will pose multi-hazard risks: fines, risks of losing assets or employees or receiving claims from customers.
And that is what happens when you bail on back office operations. Behind the ~40% of small business owners in the US complaining that accounting is the worst
part of the business and SME entrepreneurs in the UK who have legal problems
, there is a lack of organization in the back office.
But how do many companies across the world still survive? Well, corporations have a pile of money, so they can afford to spend something on the back-office, hire accountants, tax advisers, compliance specialists, etc. They can call one of the ‘Big four’ accounting firms after all.