Effective means what is best for the business and efficient usually means cheaper. I often meet with clients and their accountants. Usually the accountants are looking at efficency and why the debt to liquid asset ratios need to be tightly controlled. There is some merit to these arguments. However, if we do not invest in equipment and personnel training we may lose profitability and competitive advantage.
Few companies grow by ultra conservative managment.
Maybe a lot of accountants are only worried that the company does well enough to pay their fees. For comments, questions, or to subscribe to our email service, please send us your email address here . The ideas and methods described in this website were developed under unique situations. Since these siuations cannot be duplicated, you may get different results. Use and application of any of the site's content is at the user's own risk.