Many small business owners and entrepreneurs go in to business with little or no knowledge of accounting. Worse, they have no idea how to read, or understand basic financial statements about their business.
Why is that a problem?
Perhaps you’ve heard by now that 80% of start-up businesses go out of business within the first five (5) years.It is literally like steering a ship without a rudder. Accurate financial reports (not the bank balance) show whether the company is successful or not and, with analysis, management can see where the problems come from in case of negative results.
What is not realized is that many of those who do manage to keep their doors open continue to struggle and work much harder than they need to; only to close the doors years later, still in debt. Their dream of a financially stress-free lifestyle never coming to fruition.
A study by Dunn and Bradstreet revealed that 90% of small business failure is due to lack of business skills and knowledge on the part of the owner. Furthermore, research by Score & U.S Bank shows that “In 70% of small business failures a key factor was the owner not recognizing or ignoring weaknesses, and they’re not seeking help.”
You can easily learn to play the accounting game to ensure the long-term financial success of your business! How?
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