ACCOUNTING

Posted: December 3, 2012 in Uncategorized

Accounting is the language of business! By far the most meaningful thing I’ve taken away from this chapter. Looking at it now I realize how true that really is. Without it, we would never be able to run a successful business or even know if we are profitable or not. Accounting keeps track of all the financial data put into our business, organizes the information, and then translates it into something we can use to lead us in a better way. VERY IMPORTANT!

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You wouldn’t dare spend money if it was trapped in a box and you couldn’t see how much you had, you would be too fearful to spend it all. Accounting works in the same way. It tells the owners of the company how much they can afford to spend to improve their business and keep up with expenses. Without accounting, which every company should invest in getting a proffesional to do it I believe, businesses would ultimately fail. Their accounts would run dry and everything would be so clustered and unorganized that it would be impossible to track where your money is going every month.

 

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