When millions of people have written the benefits of accounting, then why I am writing, "How can Accounting help your business succeed?" Answer is simple, it will also be included all these benefits which will support you for becoming successful businessman or businesswoman.
Now, I try to explain its steps :
1. Taking Fast and Good Business Decision
When you do not keep the record, you start to see the default in yourself for becoming unsuccessful businessman. When you keep every record in your good accounting system, you will feel wonder that success is so close but you did not try. Let me explain, you are selling 20 types of products. Your sale is decreasing day by day and your cost is increasing day by day. You are feeling very upset. If you will start to keep all sales records of each products. You can check it and you will find, out of 20 products, 19 products's sale is decreasing within previous 6 months. But 1 product's sale is increasing 400%. Because there is big cost of keeping and maintaining of 19 products, so, there is increasing the loss of businessman. Now, businessman has obtained a great information from accounting. He will take the fast and good business decision, he will stop to sell all the 19 products and will sell its stock as soon as possible. He will give full concentration on his one wonderful product. He will think, if with 0% hard work, he can increase 400% increase in the sale of his wonderful product. If he will try to best, he can increase his sale of same product up-to 1000%. This is accounting information which gave him passion to do work in good direction.
2. Accounting can Use for Making Good Salesman
1. We all know that a single and good sales man is equal to $ 1 million offline and online advertisement because he has power to convert his production into sale. Sale means success of business. Sales means happiness of businessman. It is my personal experience, without learning good accounting, no one become good salesman and no company make a good salesman. For example, if you are selling insurance policy, you can not convert customer's first interview into sale, if you will not present your accounting skills relating his insurance policy. Every person want to get safe his and his family life financially by giving low amount of insurance premium. If you can make a better insurance plan after knowing his age, future receiving money and present value of his given money, you can give better advice for his investment decision.
2. If any salesman records his all past sales with its given amount. He can utilize his time better way. For example, your accounting is telling you that you have sold 70% of your all products in first interview. Rest 30% you have sold in 2 and 3 interview. But you have spent you 80% time for 2nd and 3rd interview. If you have concentrated on new customer in first interview for closing your sale, no one can stop you to reach top.
Following is a good salesman who record his 6 months sales, customers' interviews and total time spend for interviews with following ways.
Now, I try to explain its steps :
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| A business woman who succeeded with the help of Accounting |
1. Taking Fast and Good Business Decision
When you do not keep the record, you start to see the default in yourself for becoming unsuccessful businessman. When you keep every record in your good accounting system, you will feel wonder that success is so close but you did not try. Let me explain, you are selling 20 types of products. Your sale is decreasing day by day and your cost is increasing day by day. You are feeling very upset. If you will start to keep all sales records of each products. You can check it and you will find, out of 20 products, 19 products's sale is decreasing within previous 6 months. But 1 product's sale is increasing 400%. Because there is big cost of keeping and maintaining of 19 products, so, there is increasing the loss of businessman. Now, businessman has obtained a great information from accounting. He will take the fast and good business decision, he will stop to sell all the 19 products and will sell its stock as soon as possible. He will give full concentration on his one wonderful product. He will think, if with 0% hard work, he can increase 400% increase in the sale of his wonderful product. If he will try to best, he can increase his sale of same product up-to 1000%. This is accounting information which gave him passion to do work in good direction.
2. Accounting can Use for Making Good Salesman
1. We all know that a single and good sales man is equal to $ 1 million offline and online advertisement because he has power to convert his production into sale. Sale means success of business. Sales means happiness of businessman. It is my personal experience, without learning good accounting, no one become good salesman and no company make a good salesman. For example, if you are selling insurance policy, you can not convert customer's first interview into sale, if you will not present your accounting skills relating his insurance policy. Every person want to get safe his and his family life financially by giving low amount of insurance premium. If you can make a better insurance plan after knowing his age, future receiving money and present value of his given money, you can give better advice for his investment decision.
2. If any salesman records his all past sales with its given amount. He can utilize his time better way. For example, your accounting is telling you that you have sold 70% of your all products in first interview. Rest 30% you have sold in 2 and 3 interview. But you have spent you 80% time for 2nd and 3rd interview. If you have concentrated on new customer in first interview for closing your sale, no one can stop you to reach top.
Following is a good salesman who record his 6 months sales, customers' interviews and total time spend for interviews with following ways.
6 Months Record of Sales
| ||||||
| jan | feb. | March | April | May | June | |
Sales in $
| ||||||
| 1st Week | 15000 | 3000 | 2000 | 3000 | 4000 | 6000 |
| 2nd Week | 5000 | 500 | 12000 | 11000 | 8000 | 7000 |
| 3rd Week | 6000 | 11000 | 3000 | 8000 | 7000 | 10000 |
| 4th Week | 3000 | 5000 | 10000 | 5000 | 5000 | 1000 |
6 Months Interviews of Customers for Sales
| ||||||
| jan | feb. | March | April | May | June | |
| 1st Week | 1st | 1st | 1st | 1st and IInd | 1st, IInd and 3rd | 1st |
| 2nd Week | 1st | 1st, IInd and 3rd | 1st | 1st | 1st | 1st |
| 3rd Week | 1st | 1st | 1st | 1st | 1st | 1st |
| 4th Week | 1st | 1st and IInd | 1st, IInd and 3rd | 1st | 1st | 1st, IInd and 3rd |
Time Spend of Customers for Sales with in 6 Months
| ||||||
| jan | feb. | March | April | May | June | |
| One day | One day | One day | Two Weeks | Three weeks | One day | |
| One day | Two Weeks | One day | One day | One day | One day | |
| One day | One day | One day | One day | One day | One day | |
| One day | one Weeks | Three weeks | One day | One day | Three weeks | |
After this accounting record, the salesman will realized that he did not get any benefit for on 1st, 2nd and 3rd interviews because he spent more time and got less sale. So, he will take better decision for his time management with accounting.
3rd Effective Use of Resources
All those who do not use accounting, never effective use of their resources. All businessmen have limited financial resources. Only those businessmen will use these financial resources better way who keep the proper and systematic accounting records. For example, every accounting record helps you to keep some provisions, whether it is provision for doubtful debt or provision for depreciation, all these provisions are confidential reserves because it helps your cash profit. Same profit you can use as loan given to your business. Same loan, you will get at zero % interest but if you will get same loan outside from market, you will get 1% per month to 5% per month. So, better is to maintain accounting records and see how much you have saved reserve in your own business.
4th Take Action Before Risk Happens
It is old saying, "I am not in tension because I am unsuccessful but why am I satisfied after not succeeding in my business." This is also great quality of any successful businessman who do not satisfy his unsuccessful. He will again analyze his accounting. He will go more deep. Yes, he will go more deep. When he will go more deep, it is sure, he will reach at its bottom. In the bottom, he may find any accounting fraud, he may find any accounting mistake, he may find his wrong business decision but when he did not maintain accounting, how can he take action before risk happens. It is just like a person who spends his time only praying of God but who do not follow the order of God. God is saying to you that learn something useful in the life. God is saying to you to learn swimming. With learning of swimming, you can go to bottom, you can save your own life and life of others. Is it not equal to the pray of God?
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