Hello [newsfield name=”name”],
Well, we have come to the final course in the “Grow your business with accounting” challenge.
I sure hope you have enjoyed your courses and learned a lot about how to grow your business with accounting and how you can use it to your advantage.
In today’s lesson we are going to talk about What next do I need to do? And how you need to have a good accounting system in order for you to grow your business with accounting.
The next thing is to ensure you have a good accounting system that will generate, ACCURATE, RELEVANT and TIMELY financial statement for your business.
Your accounting system is the process of tracking your business financial transactions including purchases (expenses), sales (invoices and income), liabilities (funding, accounts payable), etc. and is capable of generating comprehensive statistical reports that provide management or interested parties with accurate, relevant and timely information for informed judgement and decision making.
The accounting system could be MANUAL or COMPUTERIZED.
The manual accounting system records transactions on paper while the computerized accounting system records on computer via accounting software.
This day of technology, it is better to use accounting software in view of its benefits.
There are two types of accounting software:
- OFF THE SHELF SOFTWARE which is a package you buy and install on your computer.
- ONLINE (WEB BASED or CLOUD) SOFTWARE are on the internet.
There are three ways you can keep your business books of account:
- Do It Yourself (DIY): This is a situation the owner of the business decides to handle the keeping of the books of account of his/her business. This always at the expense of the growth of the business. This is because the time to be spent on keeping the accounts could be used in the area in which the owner has comparative advantage.
- Hire an employee: Another way is to employ an accountant to help you. Most small businesses always prefer young graduates. They do this with the hope that it will save them some cost, but what they lose in the long run is always higher that the cost they think they would save. This is because the graduate might not have the necessary experience needed for the job. Also, most small businesses are burdened with high cost of maintaining employees in terms of medical bills, pension benefits, vacation and its cost etc. Your accountant can be indisposed or resigned, this could cause problems.
- Outsource it to a professional firm: This is giving the keeping or your accounting records to professional firm. This has the greatest benefits in the sense that you can tap in the business experience of the professional firm because they are business like you. A professional firm is able to look at any situation in your business holistically. What you pay to the professional firm is the fee you agree at the commencement of the assignment and not other. Whatever happens you must enjoy your service unlike when an employee’s resigned and your accounts go on leave pending when employ another one.
We help small and medium enterprises in keeping their business accounts that produces accurate, relevant and timely financial reports which can be of tremendous benefit to making informed judgement and decisions.
If you want us to help you in maintaining your business books of account, clicking the link
As we close this final course, I would like to thank you again for joining me and I sincerely hope that you have learned a lot about how to Grow Your Business with accounting and would like you take full advantage of everything that it has to offer by clicking the link HERE
Please feel free to contact me if you have any questions about how to grow your business with accounting.
Yours in enhancing your business profitability and growth
J. Taiwo Popoola