One small business owner realized that vision, optimism and a willingness to work hard were vital to the success of her new venture, but the key requirement was attention to the balance sheets. It took me a while to learn it, but you really have to run a business by the numbers. And you can't run a business by the numbers without an adequate accounting system to use as a management tool.
Incomplete records are one of the most serious errors a small business owner can make.
Very few operators enjoy the number crunching segment of running a business. However, if you keep your system simple, it can be done with a minimum amount of time and energy. Besides, accurate and complete financial records will help you chart the growth of your business and make plans for the future. In addition, you should also track daily cash receipts and credit sales, expenses and inventory received, plus employee expenses including pay and deductions. A good recordkeeping system should be easy to understand, reliable, accurate, consistent and designed to provide information on a timely basis.