Tax laws continue to change – here’s what you will face when keeping documentation in 2022.
Without cash, an automotive repair shop will inevitably shut down, regardless of how profitable it looks on paper. You can be “rich” in accounts receivable and inventory, but cash poor if these assets are not convertible into cash to meet current obligations. In fact, cash is the only asset a company needs to stay in business.
A certified public accountant (CPA) can provide a wealth of services to your company, including business advice and technical assistance. And, with the right CPA, you can also save money and become more profitable.
There was a time when you could take care of your customers and your people and the rest would take care of itself. It’s a lot more complicated than that today to run a successful business.
Are you paper rich but cash poor? A business can be profitable on paper, but bankrupt in real life – if you don’t manage cash flow effectively. Without cash, a repair shop will inevitably shut down, regardless of how profitable it looks on paper. You can be “rich” in accounts receivable and inventory, but cash poor if these assets are not convertible into cash to meet current obligations. In fact, cash is the only asset a company needs to stay in business.
Can you point your company in the direction of financial success, step on the gas, and then sit back and wait to arrive at your destination? Not quite. Any business owner knows you need to make numerous adjustments along the way – decisions about pricing, hiring, investments, and so on. So, how do you handle the array of questions facing you? One way is through cost accounting.
