Generally, business owners don’t understand the importance of having good accounting records.
They usually hire a bookkeeper and a professional accountant to do their accounts and taxes and then forget about it.
A business where the owner understands the importance of good numbers is one of the main things that distinguishes a successful business from those that fail.
The following are the main reasons why business owners should have accurate and timely financials information:
- Lack of adequate record keeping is a major cause of business failure.
- If you don’t understand your numbers, you can’t manage them.
- Good accounting records provide the data needed to make informed, data-driven decisions.
- Good information allows business owners not to operate in a vacuum. They can spot trends much earlier.
- Good information helps prevent or detect fraud quickly.
- Companies with good records almost always make higher profits than a similar company with poor records.
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