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Good Accounting Practices is the Key to Your Company's Survival

Apr 21, 2008
Running a business involves attention to a wide variety of company functions. Whether you are a one-person business run out of a spare bedroom or a large organization with hundreds of employees one thing is true: if you don't know where your money is then you are doomed to fail.

Studies Show Good Accounting is Good Business

According to The Small Business Book, the frequency and quality of a company's internal accounting services directly correlates to the organization's survival rate.

Monthly Accounting: 79.9% Company Survival Rate
Quarterly Accounting: 71.5% Company Survival Rate
Half Yearly: 49.9% Company Survival Rate
Annually: 36% Company Survival Rate

Even if a company does manage their accounting services regularly the quality of accounting services can also impact a company survival rate.

Quality of Accounting Records
Excellent or Good: 63% Company Survival Rate
Average: 49.8% Company Survival Rate
Inadequate: 20.1% Company Survival Rate
Poor or Non Existent: 2.5% Company Survival Rate

Without proper accounting services in place, it is impossible to plan for the future. When situations arise such as a sudden increase in purchasing costs, you may not see the problem until it reaches a critical juncture.

When you file your taxes, good accounting records make the process a lot easier. In the event of an audit your bookkeeping services can directly decide your company's future.

But I Can't Afford to Hire an Accountant

The obvious and flip response to that is, "You can't afford not to hire an accountant." Saving money by offloading bookkeeping services on someone inexperienced is a false economy. If your company fails, that saved money won't do you any good.

To be fair, it really isn't feasible for some companies to have a accountant on staff. Small organizations may not have enough work to keep a full-time accountant busy, requiring the person to waste time with other work to fill out a 40-hour week. Often accounting services fall on the shoulders of the owner who may be flying blind and who certainly has better things to do building the business.

There is a solution for all businesses large and small: outsourced accounting services.

Let the Experts Do the Job

By hiring an outside accounting firm to take care of your books, you have qualified and experienced professionals handling the problem. These are people who do nothing but accounting all day and have the background to get your company's financial records in order.

This doesn't mean you give up control of your books. Today almost all accounting organizations use online bookkeeping services that give you full access to your records at any time of day, even after hours. You are never out of the loop or surprised by developments as long as you make a point of checking your financial reports now and then.

Although your data is easily accessible, that doesn't mean it is insecure. Access is limited by the latest in web encryption technology. You get the benefit of services such as regular data backup and network security, services that your company may not be able to provide.

Give your business the competitive edge by updating your accounting services before it's too late.
About the Author
Author is a freelance copywriter. For more information on Accounting
, visit http://www.osibusinessservices.com.
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