Thursday, June 4, 2009

3 Reasons Why Accounting Is Important

There are many reason why accounting is important. Accounting is a language that needs to be understood by today's business owner. I have been guilty of speaking the accounting language only from an accountant's standpoint and not that of the business owner.

Accounting is important because:

  • Accounting is often call the "language of business ", because it deals with the interpretation of a companies operations and finances. In light of recent financial trouble of major companies like General Motors and Chrysler it is a language we need a refresher course on.

  • Acccounting is extremely important to any business because it is the guiding force to sound management decisions. Is your actual numbers for sales in line with your budget? A review of your budget would help you answer this question.

  • Accounting is also important because it helps you move to the next level of your plan for your business. A good accounting system with the proper internal controls will help you avoid areas of fraud in your business. Is more than one signature required on checks written. The answer to this question should be spelled out in your internal controls.
The language of accounting is one to be familiar with if you want to take your business to the next level.

1 comment:

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