We’re going to go back to accounting 101 basics and why it matters for your business. Accounting is critical to any company for these reasons:
- Increased profitability
- Stability and safety for your business
- Accountability across all levels of your organization
When you think about accounting most people think about things like debits and credits, all the tedious stuff that accountants need to deal with in the back of a dark office.
What exactly is “Crunching the Numbers”?
You’ve heard that term “crunching the numbers”, but what does it really mean? All it means is accurate accounting for your business. The principles of accounting have been the same for five hundred years; the rules haven’t varied and won’t anytime soon.
You need to demand that your accounting department produces quality work. Once you get the numbers and see that they’re correct, that’s where accounting really starts to get interesting and fun. The exciting part is what you can do with it.
Once you know exactly where you are you can start to make forecasts about where you’re going. Forecasting is a great accountability tool to gain control in your organization, to get better peace of mind, and to drive profitability and business value. When you correctly use financial statements you drive safety into your business and create stability.
Accounting is the one thing you can depend on because it’s black and white, and it’s there to give you control. It’s there to give you increased profitability, increased business value, it’s there give you safety and security, and most importantly, it’s there to give you that accountability on every level of your organization.
It’s there to give you increased profitability, increased business value, and, most importantly, it’s there to give you accountability on every level of your organization.