The Need For Accounting
To quote from In The Black - Nine Principles to Make Your Business Profitable by Allen B. Bostrom, CPA, there are "three primary functions of business: Marketing, Production and Accounting. As with a three-legged stool, all three major functions are important, and attention must be given to all three to allow your business to grow. Ignoring any of the three may work for a short time, but eventually your business will suffer and perhaps fail."
Many businesses are created each year with the hope that they will generate income. Surprisingly, many of these businesses close within the first year, even after reporting a profit. Others succeed for several years without netting the profit they potentially could. In both cases, hard-working entrepreneurs know how to earn money but not how to keep track of it. Information is the key to Profit and Growth.
Every business needs to know where its money is coming from, where it is going, how much money it is earning, and how much working capital it has. Unfortunately, many small businesses have neither the knowledge to keep their own books accurately nor the income to pay a Certified Public Accountant (CPA) to do it. As a result, these companies lose money to debtors, pay unnecessary interest to creditors, lose inventory, pay IRS penalties, fail to secure loans for new assets, and the list goes on and on.
A good and accurate accounting system will solve all these problems, leaving the business to focus on making money and growing.
Too often business owners are so preoccupied with select parts of the accounting process that they don't realize just how valuable all that financial information can be. Some business owners focus on preparing their yearly tax returns. Others may worry about that and their cash flow. And others may just balance their checkbooks. If you choose to have us do your accounting, we can do all that and more. And most importantly, we can help you become more profitable and grow your business.
Why Outsource?
Accounting is a core business function. Without accounting, a business is sure to fail. With accounting, a business might survive. With accounting that is managed and analyzed on a regular basis, a business is likely to succeed.
Small new businesses have a bleak forecast. Recent studies from the Small Business Administration (SBA) indicate that one third of new businesses fail within the first two years, and 56% fail within four years. Poor financial management is often the reason for small business failures.
Often a business owner or manager performs the accounting functions because they want to maintain complete control of their business. They are afraid that outsourcing of their accounting will be too expensive. What they don't realize is that outsourcing is a useful management tool that can save a business both time and money while preventing potential failure. And when you outsource to the right accountant, it can be the difference between survival and profitable success.
There are countless benefits to outsourcing your accounting needs. They include:
- Saves Time - Allows a business owner to focus on core activities of the business.
- Saves Money - Allows for cost & efficiency savings in the area of office personnel & reduces overhead.
- Gain access to valuable accounting expertise, equipment, and technology.
- Gain Access to Profit-Building Information.
- Staffing flexibility - Accounting outsourcing will allow businesses that have seasonal or cyclical demands to bring in additional resources when you need them and release them when you're done.
- Develop Internal Staff - On-site outsourcing of accounting will bring people with the skills you need into your company. Your people can work alongside them to acquire the skill sets needed.
Let Daily Records Accounting Service work on your "Day to Day" Accounting processes, leaving you with valuable time to focus on the Marketing and Production for your business.
Call (757) 312-0215 or Email Us today for more information and a FREE, no-obligation consultation. We will customize a package of services that is competitively priced and designed to save you time, energy, and money. See our SERVICES page for details of what we can offer you.