Why Business Owners Are Using Accounting Systems

Global Resources utilizes knowledge, experience and expertise to help the owners of small and medium – size businesses solve challenges that are prohibiting them from expansion. Many times, implementing a new, efficient system makes a world of difference to a small business owner.

The business consultants at Global Resources LLC often help businesses implement new accounting systems. If you’re wondering why you might need to start using an new more effective accounting system, we have listed some reasons below:

  1. It’s the law – The IRS requires that businesses prepare and retain a set of records and documents that can be audited. Internal Revenue Code requires that business have the ability to compute taxable income by using some sort of common-sense accounting system that clearly reflects income. In addition, the federal legislation requires public companies to have detailed and accurate books, records and accounts of transactions and dispositions of the assets.
  2. Assists in smart decision making – A business that fails to keep an accurate record of its business transactions may lose revenue and is more likely to operate inefficiently.  An effective accounting system ultimately gives you a true picture of your business performance.
  3. Easier to navigate finances – Success requires the ability to perform financial analysis, which is to accurately measure business growth, profitability and cash flow, as well as to reasonably estimate your financial condition. By having an up-to-date accounting system, your finances will be much easier to navigate. A good accounting information system also helps management answer financial questions, including: What assets do we have? How much and what kind of debt is outstanding? Were the sales higher this period than last? Did we make a profit last period? Are any of product lines or divisions operating at a loss? Is the rate of return on net assets increasing? What were cash inflows and outflows? Is the cash flow enough to pay back debt? Can we safely increase our dividends to stockholders?
  4. The professionals at Global Resources create “managerial” accounting systems that do more than simply keep track of the finances of the business, but also incorporates such sophisticated tools as a cash management spread sheet which allows the business owner to predict the cash needs of the company months in advance.  CPA’s focus on accounting systems that are historical which tell you what happened in the past.  We believe in a managerial based accounting system that can help you determine where you are going and how to get there!

To learn more about us and / or to schedule your complimentary appointment with the business consultants at Global Resources LLC, call us at 855-338-0266.