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Making sure your accounting is on track

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Let's look at a few pointers regarding making sure your accounting is on track.

  1. First off, let's consider what accounting is. When most people thinking of accounting, and of keeping accounting on track for that matter, they think of the process whereby you don't get behind in payments, muddled in your bills, frantic around tax time, etc. In other words, accounting simply means keeping track of what you're spending and where you're spending it so as to avoid a lot of headache and hassle. Now, this is a great place to start! If that remained solely your definition of accounting forever, you'd be in pretty good shape, so long as you lived by it. However, there's something else to consider here. When you're talking about business accounting, you're not only keeping track of spending and so forth for taxes purposes, you're looking for business trends as well that will help you to GROW your business. Viewed this way, accounting is not just a powerful organization tool; it's a powerful, aggressive tool for expanding your business and staying ahead of the market.
  2. Let's say, for example, that you're in the office ware business, and you keep a pretty good account of where your money goes. This is a very simple example, even an obvious one; but you can use it to spread up and out! You notice that in the month of May, spiral notebooks and pencils shoot way off the charts. You're selling a lot, and buying a lot to sell more. So you ask yourself: Why is it that notebooks and pencils are so popular in May? Obviously, the answer is that school's about to start, but you get my drift, I hope. The closer you look at your accounting, the more you'll see these little trends and patterns that will help you know what to invest in and when, how to market your product, and so forth.
  3. To do this successfully, you'll want to make sure that your accounting is on track. "On track" means-organized; up to date; viable; credible; etc. Too many people are satisfied with being close to organized when it comes to accounting; to being right on the edge of organization. This isn't good enough. Not only will you be blind to those trends mentioned above, you'll find yourself with more work than necessary just when your strength is needed somewhere else. But how can you organize your accounts?
  4. As a business owner, you'll rely quite heavily on your accountant, or accounting team, to make sure your accounting is on track. You'll need to be very close to your accountant; you'll need to be constantly checking up. One rule of thumb for keeping your accounting on track is to know as much as your accountant does, or at least to appear to do so; that way you keep people on their toes. This means you'll have to keep a close eye on what you're spending etc., and not simply rely on other people to do it for you, no matter how well paid and well trained they are. A good accountant or a good accounting team is really the key to keeping your accounting on track. But the key to making an accounting team good or even great is for the boss to be a good or great accountant him or herself. Once your employees see that you're keeping a close eye on things, their eyes will be looking all the closer, and your accounting will stay on track. Keep these ideas in mind, and do some further research on your own; keeping your accounting on track will solve a thousand problems and create a thousand opportunities.

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