Looking at a page of numbers and not knowing what they mean can be discouraging and ultimately, costly. When you sit down with your accountant, you shouldn’t be just “going through the motions,” of listening, but fully engaged with what your accountant is telling you about the life of your business, and your life, too. It’s time for you to experience the Accounting Advantage program of MBS Accountancy in Fresno, California. Numbers mean something – specifically, the difference between a successful or failed business. Here are some examples where the MBS Accounting Advantage can make a difference in your business:
• Properly managing your receivables means maximizing your cash flow. The aging of your accounts receivables tells you a story, that, with proper analysis, identifies which customers are your best customers – large or small – and which are your problems, perhaps using you and your cash to finance their business by paying you late. Any money in their account instead of yours is not only costing you money, but it’s costing you opportunities, too, because you may not have the cash to take advantage of discounts from your suppliers or have to sweat out upcoming payroll days.
• If you’re not tracking your expenses, then you’re ignoring a huge part of your financial health, especially if your expenses are being paid for with a line of credit. Just like accounts receivable, accounts payable (expenses) tell you a story, too. Proper monitoring of your expenses tells you where and how your resources are being used, and whether or not there is an acceptable return on investment for your money spent. High expense does not always equal high income and high profit.
• Many companies do not know the true meaning of profit, but believe if they have money left over at the end of the year, they’re profitable. They don’t track depreciation, and it doesn’t occur to them if the owner of the company isn’t taking out a fair share of income, they are merely financing the company by their own sweat equity without reward. When a company is being prepared to be sold, how much money the owner takes out along the way makes a big difference; rarely does anyone want to buy a company which doesn’t throw off an annual profit by traditional
definition. The Accounting Advantage from MBS Accountancy is like having a professional accountant always standing beside you, helping guide you to success and profitability.