The Importance of Counting the Beans
They call accountants "bean counters." Well, the total number of beans, whether they're available, increasing or decreasing, and if they're of high quality all matter to the viability and future of your business. Yes, accountants can make or break your business. Sales are important, so is customer relations and product, too. There is no denying it, successful businesses rely on many factors. Everything from strategic planning, to marketing, and more, contribute to success. But accurate, objective accounting is paramount.
THE ENTREPRENEUR
It is well known that poor management is the primary reason for business failure. Entrepreneurs are often the "idea people," and typically not very good at business details. Experienced mangers know that you must hire people who have strengths that you lack.
ACCOUNTING
Nothing may be more important to business success than bean counting. Accounting for, and knowing with accuracy and confidence, your financial standing is arguably the most critical determinant between success and failure. How can you possibly make sound business decisions without knowing, with confidence, your financial situation and the fiscal risks and potential rewards associated with your plans?
Cost accounting, cash flow accounting, accrual accounting, tax accounting, etc., may all seem incredibly complex, even incomprehensible, to many business owners. Yet when there are insufficient funds for a business expansion, relocation or acquisition, reality hits home. Poor cash management can cause or contribute to the demise of your enterprise, very quickly.
WHAT SHOULD YOU BE CONCERNED WITH?
Cash management is probably the most important measurement. You need to know how much money you have on hand, whether it's increasing or decreasing, when your cash needs may increase (or decrease), how and where to obtain more cash, etc. What we all want is "positive cash flow" (i.e., more $$$ coming in than going out). If this is not the case, you need to be concerned and proactive, especially when it's not a temporary circumstance.
HOW DO YOU FIND AN ACCOUNTANT?
First, you must decide if you need a full-time Accountant. Small businesses frequently rely on local CPA's, and/or contract auditors and public accountants. Whatever your approach, the selection of an accountant is a task of import and consequence. The Yellow Pages won't do.
Ask other business owners, check with your Chamber of Commerce, obtain referrals, and/or check with the American Institute of Certified Public Accountants. On the Institute's website you can limit your search by city and state, or search your state's chapter resource. Because of the importance of this decision, take your time, perform due diligence, and consider several individuals and options. It has to be someone you're comfortable with. After all, your accountant will know intimate details of your business.
You will certainly want competence, experience, expertise, loyalty, confidentiality, good judgment and honesty. You will also want an individual who takes a personal and serious interest in your business; its success and growth. And you need someone who will go beyond the numbers and provide input to you so that you can achieve your goals and dreams.
Copyright , 2008, Dr. Ben A. Carlsen, MBA. All Rights Reserved Worldwide for all Media. You may reprint this article in your ezine, newsletter, newspaper, magazine, website, etc. as long as you leave all of the links active, do not edit the article in any way, leave my name and bio box intact, and you follow all of the EzineArticles Terms of Service for Publishers.