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Importance of Proper Accounting & Bookkeeping?
Proper accounting and bookkeeping is a vital administrative task for every entrepreneur in order to control and report the financial health of the business. More over, proper accounting and bookkeeping is also an essential element in guiding the strategic direction of the business towards long term success.
How does accounting help in business success?
As entrepreneurs, managers, and business owners, you have to make frequent important business decisions which significantly affect the future of your business. These decisions are related to everything in your business, i.e., financing, acquiring equipment, hiring, leasing office space, approaching a new customer, introducing a new product, getting a new client, firing an old client, etc. No matter what the nature of your decision is, it should always be consistent with the financial realities of your business. This means that if you want to make a good decision for long term success of your business, you should:
- have thorough understanding of the current financial reality of your business related to the underlying situation;
- recognize the strategic and financial consequence of each decision alternative; And
- decide on the alternative which best solves the problem, is consistent with the underlying financial reality, and aligns with the long term goals of your business
Business Failure and its Relationship to Improper Accounting & Bookkeeping?
It is a statistical fact that majority of businesses fail in their first 5 years. What is not commonly known is that businesses fail primarily due to decisions which are not consistent with its financial realities. This can happen if the business
- does not have a proper bookkeeping system to record its financial information accurately on a timely basis;
- does not have a proper accounting to report the financial health of the business properly; Or
- does not have a proper understanding of how to interpret financial reports to understand the reality behind the numbers
Cost Vs. Investment?
Always try to spend your hard earned money on things which will reap long term benefits, i.e., invest rather than spend. Our guiding philosophy is to transform your expense dollar into an investment for your future success. Businesses that spend on expenses with long term investment nature reap its benefits much longer. The point to remember is to balance the cost versus the benefit. Most businesses see accounting and bookkeeping as an added cost. In reality, if done properly, this is a significant investment in the future of your business.
If you want your business to succeed in the long term, you need to invest in the effort to implement a complete and a comprehensive accounting system for your business to monitor its financial health. Such an accounting system accurately records all financial transactions, retains relevant business documents in an organized manner, and timely reports the financial health of the business.
How can we help you succeed?
We have the knowledge and experience of helping businesses to be profitable and successful in the long term by addressing their accounting and bookkeeping needs. We will understand your business thoroughly and help you to implement a thorough system which will:
- accurately record all financial transactions;
- retain and store all relevant business documents in an orderly and an organized fashion; And
- timely report the financial health of the organization to you in well-organized, meaningful, and relevant financial reports.
Contact us today for a free consultation on how you can be successful.