Modern Enterprise – Process – Finance and Accounting

Money is the lifeblood of a business.

It’s like electricity. When there is good cash flow things get done because bills and salaries are paid.  It’s important to carefully watch the income and expense sides of the business. The processes I outline below are just a few of the important things that a business should understand. Spend time thinking about each of these categories when writing a business plan, or planning for growth in the future.

Finance
1. Budgeting – Knowing How to spend money.
2. Forecast – Knowing how to anticipate costs with growth.
3. Reporting – Creating the Balance Sheets , Income Statement, and Cash flow Statements

Accounting
1. Accounts Payable – Paying the Bills
2. Accounts Receivable – Getting Paid
3. Categorizing Expenses – Knowing where the money is going.
4. Categorizing Income – Know where the money is coming from.

Individuals need to manage their finances. Organizations need to manage their accounts. If you can’t budget, you can’t hire. If you can’t hire, you can’t grow. If you can’t grow, you will die. If you can’t forecast, or report, you run into the same problems: you can’t hire, or grow, so you die. If you don’t ensure that your employees are paid on time, you might not have employees for very long. If you don’t ensure that you are paid on time, you might not have a company for very long!

Some of the books that we recommend to our employees for learning about finance, business finance and personal finance include:

Advertisements

One thought on “Modern Enterprise – Process – Finance and Accounting

  1. Pingback: Modern Enterprise – Paying the Rent and Understanding Fixed vs. Variable Costs | as it changes

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s