We Don’t Have Time for Good Accounting!

Your sister and her business partner have just launched their own software company. They have developed software that compresses and packages email text and voice messages, allowing email and phone messages to be safely transmitted over a wireless network even while flying in a commercial airliner. Orders for the software have been pouring in, and your sister and her business partner estimate that they will make at least $10 million within the next three months. You suggest to your sister that she hire an accountant and begin to set up an accounting system within her new company. Your sister replies that accounting systems are for old-fashioned companies such as General Motors and Procter & Gamble; she wants to focus her time on hiring new software developers and on working on ideas for her company’s next generation of software products. Is your sister correct? Explain.