New entrepreneur – Why we need accounting for our business?

New entrepreneur – Why we need accounting for our business?
I always thought that every entrepreneur understand that they need accounting to manage their company well. However I received many questions from new entrepreneurs on the same thing.Why do I need accounting when I start my business?
My answer is always YES you need accounting.
Being an entrepreneur you need to know what is going on.
1. How much is your sales ( detailed report)
2. What product you sell ( detailed report)
3. How much is your cost? ( detailed report)
4. How much is the gross profit?
5. How much is your overhead? ( detailed report)
6. Who owe you? Detailed invoices ( detailed report)
7. How long have they owed you? ( detailed report)
8. You owe who? ( detailed report)
9. How long have you not paid him? ( detailed report)
10. What is your cash flow?
11. What is your balance sheet? ( Asset Vs liability)
12. Are you improving ( Dashboard, Financial ratios, trend)

Without Accounting, you will not be able o answer that questions.
Research shows that Successful companies are those that have detailed reports,
they know what is going on in detailed.

Not  “Rasa nya  bisnis kita untung, tapi tak tau mana duitnya, aahhh pening betul”

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About Ir. Aziz Ismail 66 Articles
Ir.Aziz Ismail is very active member of ICT economic cluster in Malaysia. As the (Past) President of TeAM ( Technopreneur Association of Malaysia) and Vice President II NEF ( Bumiputera ICT Entrepreneur Association) he is deeply involved in many strategies, activities and issues related to the industry. He is also a Director of Majlis Tindakan Ekonomi Melayu, an umbrella organisation of 47 national NGOs with 500,000 entrepreneur members.

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