Importance of accounting records

Did you know that how frequently you do your accounting can affect your company’s survival rate?

nurturing business

Both how often you do your accounting as well as the quality of the records you keep does affect your company’s survival rate.

According to a study of small businesses in New Zealand by Robert Hamilton and John English, the frequency and quality of your accounting records plays a significant role in the survival of your business.

Frequency Survival Rate Accounting Records Survival Rate
At Least Monthly 79.7% Excellent/Good 63%
Quarterly 71.5% Average 49.8%
Half-yearly 49.9% Inadequate 20.1%
Annually 36% Poor/Non-existent 2.5%

Source: The Small Business Book: a New Zealand Guide (Robert Hamilton and John English).

Part of the process of ensuring your business not only survives but succeeds is putting an accounting system in place from day one.

A good accounting system will provide you with invaluable information and insight into how your business is doing, and help you manage your business better.

MYOB has a solution for each phase of your business’s growth. From one man shows to multi-user environments. With MYOB, you do not need to be accounting savvy to use it. Just do what you are already doing now in your business, issuing invoices to customers, purchase orders to suppliers, making payments, etc. MYOB does the accounting for you, and more importantly, generates the reports that you need to understand how your business is performing.

 

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