why is maintaining a good accounting the key to success of small business?
why is maintaining a good accounting the key to success of small business?
In what ways can small businesses benifit from maintaining good accounting?
Answers:
Chosen Answer
sombulldog2003: Small busiensses tend to run out of cash fast. So you really want to keep track of your cash flow. Also look at if you have too much A/R. Will you be able to pay your A/P. How long does it take for your inventory to turn. If you run out of cash, where can you get credit. Good accounting can help you keep an eye on these issues to mange your business.
2006-02-23 16:26:49
sombulldog2003: Small busiensses tend to run out of cash fast. So you really want to keep track of your cash flow. Also look at if you have too much A/R. Will you be able to pay your A/P. How long does it take for your inventory to turn. If you run out of cash, where can you get credit. Good accounting can help you keep an eye on these issues to mange your business.
2006-02-23 16:26:49
starryslvr: Because you have to know where you stand financially at all times. Alot of small businesses go out of business due to bad accounting records because they assume one thing and reality is completely different. You have to know where you stand with A/R and A/P. And if you need a loan to help keep going the loan officers will need to know these things as well to know if you qualify or not. Accounting is the most important part of running a business.
The financials of your small business at any stage, provide a performance management tool to aid you in making the right decisions to maximize profitability, handling the cash flow, and providing a competitive benchmark. The world of business finance can be complex and confusing. It's often easier to put aside the important numbers early in the game and do the more "fun" aspects of business building. So if you want your business to succeed you need to make sure your accounting team is in place.
2006-02-23 16:39:02
2006-02-23 16:39:02