Success of a business
Numbers, decisions and seeing the big picture; some factors which contribute to the success of a business.
Businesses need to know different numbers, not just numbers extracted in Real Time, but other figures which are forecasted such as budgets and predictions. Not only do businesses need to keep an eye out on their own figures, but knowing the figures and benchmarks of the industry they belong to is also important to remain competitive.
A decision can only be made when all the numbers have been analysed, especially for those decisions which affect expansion programmes and obtaining extra finance. Having real time information at your disposal is imperative to making the right decision. Therefore having the right figures in front of you is essential in making the right decisions leading to success of a business.
Directors have a duty to ensure the company is meeting the legal requirements set by statue. Accountants can advise on how to achieve these duties and can point them in the right direction, however the overall duty remains with the directors. There are legal requirements for nearly all transactions undertaken by a company; from paying a salary, issuing dividends, paying interest on loans and treatment of VAT on expenditure. Knowing when to convene meetings, when notices should be issued, treating minority shareholders correctly; these are some of the issues directors have to be aware of.
Where directors are following the legal requirements, it follows that the business is heading in the right direction.
With cloud accounting on the uptake by both businesses and accountants, the availability of Real Time information has never been easier. There are many cloud accounting providers on the market which simplify the steps taken to record a transaction. […]