A couple of years ago, a client of mine handed me three large boxes in September, and asked that I prepare their books in order to have their CPA prepare their year-end taxes for their personal and business returns.In these boxes were a years’ worth of unopened mail including bank statements, credit card statements, literally thousands of receipts, unopened cards for their children with cash inside (yes, indeed) and a variety of other documents unrelated to their accounting.
Simply opening each and every piece of mail and organizing everything by date took me over three entire days to complete. At the end of this project which took me months to input into accounting software, I was still missing numerous bank and credit card statements.
Statistics show that both the frequency of your accounting and the quality of the records you keep can dramatically affect your company’s survival rate. How frequently you do your accounting can affect your company’s survival rate. How well your records are kept can also affect your company’s survival rate. (Source: The Small Business Book; Robert Hamilton and John English)
|
Frequency |
Survival Rate |
|
At Least Monthly |
79.7% |
|
Quarterly |
71.5% |
|
Half-yearly |
49.9% |
|
Annually |
36% |
|
Accounting Records |
Survival Rate |
|
Excellent/Good |
63% |
|
Average |
49.8% |
|
Inadequate |
20.1% |
|
Poor/Non-existent |
2.5% |
As a business owner, you should be taking an active role in the finances of your company. Perhaps you are a small business owner who handles your own finances and the scenario above is not too far off from your situation. You need help and you know it.
To learn more about how OSI Business Services, LLC can help you improve your financial situation, please visit our website at http://www.OSIBusinessServices.com. You may call or email us to discuss your needs or fill out the Contact Form on our website.
Posted by Jillian Dearing 
