How poor accounting methods cause businesses to lose money

 Hi! Do you own or made any company previously? Well, today's topic is "How poor accounting methods cause businesses to lose money.".

The first way and most extreme way is bankruptcy. There could be hundreds of ways that a company can run out of money. But it usually goes like this, the company loses money → they tried to get investment → but they fail miserably and they will stay as long as they can, eventually bankrupting or succeeding with the miracle which doesn't happen often.  But let's go deeper, firstly, they will lose their money or their investment didn't end well or they somehow ran out of money. Then they will try to ask for help, usually loaning money from the bank or trying to get more money by asking for a more or better investment. But they fail on bringing the company back to life. And they will probably declare bankruptcy. That would be how things would be happening. But those are the extreme things that could happen but it really depends on what kind of company is losing the money.

If it is a big company like Apple or Microsoft, one statistician will realize what is going on and report it to their boss, and he/she will fire the person that is making mistakes or fix the problem. But if it is a small company with only 20 people, they probably won't have a person to analyze their profit and their loss. So it will probably drive them to bankruptcy or they will be saved by someone who found out about this kind of problem. 

To sum up all of the pieces of information, in extreme cases, it could lead a company or companies relying on it to bankruptcy, which wouldn't be very good news. But mostly, if it is a big company, one statistician found out about it while analyzing the data, and probably fix the problem by reporting it. But for small companies, it can be little bit tricky.