Whether one is running a small business baking cakes, repairing computers or keeping books, one must grasp and apply financial principles and practices to sustain the business. Accounting services the majority of background activity in any business as it manages the lifeline. As money makes the world go round, the same effect pulsates through the business cycle. Establishments which function on a non-profit generating basis still need to see some cash in their bank accounts for another day of business. Despite the best of motivation to persuade staff to stay, absence of pay checks tend to result in empty offices. It is also practically impossible for the lone proprietor to survive on air and sunshine.
Upon establishing clear need for the upkeep of the business’s financial goings-on, the owner has to understand the subject. Unless one is planning to hire trained staff or round a band of volunteers from family and friends, it may be best to hit the books. Coupled with ever present technology, the task of maintaining one’s company accounts is alleviated by friendly accounting software. One can then derive an informed decision on whether to handle the job on his own, hire a staff or outsource to providers of accounting services.
Grounded with the fundamentals in financial principles and practices, one proceeds to take a step further. Although running a business seems like a dream, it can often turn into a nightmare. Understanding what one’s business is worth is the storyline for the balance sheet. …Read more