The accountancy system is probably the most important system in a business.
It is often the worst run and least appreciated system in a business. Many see it as a necessary evil, (probably some don’t even see it as necessary), and not as the source of vital information and feedback.
Accountancy can be defined as the recording of business activity and conversion of that data into meaningful information on which decisions are made.
This system could be the difference between you eating lobster or spam, driving a Maserati or having no car at all. It is both a planning and feedback system that enables managers to make decisions on how to run a business.
Pay close attention to the source documents and treatment of each transaction and you will have a system that has integrity. If you have such a system you should be in a position to make good decisions, (not necessarily popular), for your business.
How much do you appreciate your accountancy system and do you keep it up to date and feed it with good substantial data?
How much time do you spend learning how to interpret the information it provides?
Have a look at some of the articles in our links page as a starter if you have little or no training in accounting. (Click here)
Successful businesses have a vision, plans and a monitoring system to keep them on track. Does your business?
