Thursday, March 30, 2017

Why Accounting Is The Saving Grace Of Your Small Business

Ray Phillips is the CEO of Soapbox, which makes the next generation of washcloths for kids. As the fun, animal-themed plush toys became more and more popular, Ray realized the importance of proper accounting. Initially, Ray used Excel spreadsheets to help him organize his finances, but this failed to paint an accurate picture of his overall fiscal health. As Ray attests, knowing his business was turning a profit wasn’t simply enough to succeed. Ray needed to know his exact profit margins over weeks, months and years in order to chart his future. By defining clear patterns in his income and expenses over time, Ray began to make wiser decisions that allowed his company to thrive. Knowing where to spend more money, and where to cut back, is a crucial part of running any small business.

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