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Your Company Cannot Survive Without Solid Accounting Practices

Irrespective of whether you are a small time businessman running a one man show operating from your garage or a make-shift room space, or the sole owner or an important part of a large organization providing employment to thousands through perhaps some network of retail outlets / branches, one thing is dead certain. Unless you know where your money is coming from and where it is going to, your chances of success and survival are very dim indeed.

"The Small Business Book" reveals that there are enough statistics to prove that there is a sound accounting system behind every successful business and a direct correlation exists of how often business activities are reviewed and the quality of the prevailing internal control system to the ultimate survival rate of any business organization.

These facts gathered from actual statistical data do not lie -

Frequency of Company Accounting Review Survival Rate

• Monthly 79.9%
• Quarterly 71.5%
• Half Yearly 49.9%
• Annually 36.0%

The frequency of review of accounts in itself is inadequate for a company's survival unless backed with quality accounting services comprising of internal controls and checks throughout the accounting system, as the table below reveals:

Quality of Company Accounting Services Survival Rate

• Excellent or Good 63.0%
• Average 49.8%
• Inadequate 20.1%
• Poor or Non-existent 2.5%

A high quality system of internal control and internal check is indispensable for timely detection of bottlenecks, cost variances etc. so that remedial action can be taken before it is too late. Keeping accurate and up to date accounting records will make the task of filing returns and payment of taxes very much easier, so that by regular submission of your accounts for audit, you can be sure where your Company is heading.

Some people think that they cannot afford to hire an Accountant or have an elaborate accounting system in place. Trying to save money at every juncture without paying due regard to their possible consequences is not good economics. The hidden costs associated with such negative attitudes may manifest very much later when you would realize that you have ultimately paid a very big price for the comparatively meager saving of not running a proper accounts department.

In a small-scale business there may not be enough work to justify the employment of a full time accountant and too many accounting staff. In such cases the owner may be compelled to take over the accounting functions too on his shoulders neglecting more important work like overall planning and providing direction to the business. But now such businesses as well as large companies can take heart from the fact that there is a very good solution to the high cost of running an effective accounts department; and that is to outsource your accounts.

By outsourcing, you can delegate the book keeping and connected functions to a set of professionals who with their qualifications and vast experience can better advise you and provide timely and meaningful information for the more efficient running of your business. Do not fear that you are palming off the entire accounting system to an outside firm where you lose all control. On the contrary, the data compiled by them would be constantly updated and available for scrutiny and querying 24 hours a day online unlike in a conventional office where you would need the services of many other personnel and that too confined to normal working hours only.

Your confidential accounting information though freely accessible, is however secured with the latest technologies in web encryption. Additionally, you enjoy network security with regular data backup to ensure that you lose none of your data and records.

Act before it is too late. Upgrade your accounting system to something that can be relied upon, without springing unpleasant and irreversible surprises.

About the Author
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