Challenging The Status Quo – Do You Know Your Numbers
Attended my nephews graduation the other day and one of the speakers told the graduants that their mission to the world was to go and challenge the status quo. He told them that we are where we are today because some people challenged the status quo. That was my take home of the whole ceremony and it has stayed with me since then.
The more things change, the more they stay the same — especially in business. And that’s the problem, according to a global business consultant.
As much as we all acknowledge how the world has changed over the last two decades, businesses tend to continue doing things the same way they’ve always done them. I can’t count the number of times business managers and operators have told me, ‘Well, that’s the way we’ve always done it.’ The truth is that most business managers and operators talk about change far more than they actually engage in it. That’s because they are afraid of making any change out of fear, out of “Big Bang” disruption, out of the wrong change or out of leaving the safety and comfort of the known. We’re stuck in the way we’ve always done it and that’s a big reason why our businesses are stuck in neutral.
I believe that the key to evolving and prospering is to not only challenge some of our most basic business assumptions, but, in some cases, to reject them outright. Businesses that let go of the status quo will begin to rise above their competition, defying gravity in a sense.
In order to start that process, business managers and operators should start questioning some of the most common sacred cows of business, including:
- Are we making money, or losing it? How much?
- Is the business on sound financial ground?
- Is financial trouble lurking ahead?
Learning QuickBooks and accurate financial records will help answer these important questions mentioned above. A sound accounting system is the foundation on which all of this valuable financial information can be built.
Poor financial management is one of the leading reasons that businesses fail. In many cases, failure could have been avoided if the owners had applied sound financial principles to all their dealings and decisions. Financial management is not something that you can leave to your banker, financial planner, accountant or bookkeeper. You need to have basic accounting knowledge (like understanding how QuickBooks works) yourself and use them on a daily basis, even if you plan to leave the more complicated work to hired professionals.
Accounting involves designing information systems to provide useful reports to monitor and control business activities. In order to use the reports effectively, decision makers must be able to interpret the information. The skills needed to understand and interpret accounting information come from an insight into each aspect of accounting, including recordkeeping. Because accounting is part of so much that we do in business and our everyday lives, business managers and operators can enjoy greater opportunities if they understand and are able to use accounting information effectively.