We call it the heartbeat of your business. Have the proper accounting system in place allows you to know and understand where your company stands financially at any point in time.
The term “accounting” in its simplist form means to “account” for something. Take the horned-rimmed specs and the pocket protector visual out of your head right now and focus on how important this is to your business. How are you currently tracking and capturing the activity of your business? On a bank statement? Wrong. On an excel spreadsheet? Wrong. Is everything captured in your unbelievable memory? Still wrong.
Every time your write a check, every time you receive a bill, every time you use a debit or credit card, every time you invoice a customer and collect payment, it has to be properly tracked in your accounting system. There are so many constantly moving parts and transactions taking place for most businesses that to ignore or delay accurate and timely accounting could be detrimental and possibly fatal to your company.
You need to be able to look at your Company’s financial picture at any point in time and know it is accurate so the next decision you make is completely supported by fact.
We’ve seen too many businesses fail because the decision-makers did not properly understand the financial heartbeat of their company. Knowing where you stand financially allows you to better run your business on a daily basis. Having an accounting system and being discplined enough to use it is the first step in getting there.