10 Aug Get a Healthy Accounting System

Accounting is the language you speak if you want to be profitable.  Essentially, accounting is the story of what is happening day to day with your money.  If you want to be profitable, you need a positive balance.  The best way to interpret where your money is going is to take a good, hard look at how you are generating and spending it.  That’s where accounting comes in…

In a sense, having a good accounting system could be compared to your physical health.  If you eat well and exercise, for the most part, barring bad luck or genetics, you will be healthy.  If you are well organized and capture your business transactions properly and completely, your business will be financially healthy.

Having a healthy accounting system can save time and reduce stress.  If your accounting system is healthy, you can easily run reports that show you relevant data, such as how much income you have for a given period, a snapshot of the balance in your cash account that includes outstanding checks, and whether or not you are on target to meet your budget’s objectives.