Accounting to any business big or small is very important. It is the life-blood of the business. I even heard some one said that accounting is like to any business, small or large is like the fuel in your car. If you don’t have the right fuel or amount of fuel in your car, how far can you go?
What is the importance of learning accounting for our business? Why do I have to learn the terms assets, liabilities, sales, book keeping, cash flows & and many others? Of course it’s not a necessity when there are hundreds of accounting software’s or accountant firms out there that offer services that will ease your burden. Well as a non-accountant I say this. It doesn’t hurt to have some insights to accounting for this can help you in many ways pertaining your business. It can help you in making smart decisions for the future of your business.
By understanding simple accounting, we can determine where our business is going, where the cash comes from and where it ends up going. By knowing this important accounting info, we can determine if the cost justifies the means. By studying accounting, we can interpret reports that can make or break our business. We can also easily determine where we can get extra stash of cash by reading reports.
For example, there is a shortage of cash. By learning accounting and understanding important accounting info’s. we can determine in which way, how and /or where we can cut expenses. By understanding this reports, we can decide for the betterment of our business.