Poor financial record keeping is THE main reason a businesses will fail.

Correct accounting procedure produces tools to help you manage your company:

The Profit and Loss statement ("P&L") tells you how much money you've made, and which endeavors earned (or lost) that money. It also details your expenses by categories.

The Balance Sheet lists your cash and property assets, as well as your long-term and short- term loans and financial obligations.

Cash Flow helps you analyze your immediate cash availability, decide the pay-cycle of your bills and lets you forecast future booms and slumps before they happen, so that you can plan accordingly.

Accounts Receivable ("A/R") tracks your invoicing to your clients and provides the detail information you need to know that you are being paid for the goods and services you have provided.

Accounts Payable ("A/P") tracks the bills you have outstanding to your vendors.

Accurate financial records such as the P&L and the Balance Sheet are standard requirements for any loans you may want to help grow your company. They tell the story of your company, it's past successes and it's future potential, in the language that bankers and investors trust.

Accurate and timely record keeping ensures that the reporting and tax payments to various controlling entities are submitted correct and on-time, thus avoiding penalties and sanctions that can be imposed on your company.

Accurate records help safe-guard against company theft.

Financial records are needed to file accurate federal and state income tax returns, and to support those returns if you get audited.

Good accounting is not an expense; it's your strongest asset!