While it’s true that success often brings success, it’s equally true that success often breeds failure particularly for a small business.
That’s because as a business begins to grow rapidly, the owners often work frantically to simply meet demand, minimizing the time they devote to keeping good records.
Good records will help you answer important questions about your company’s financial health. What’s really happening in my business? Why is cash flow always a problem? How much is real profit anyway? If you’re not exactly sure, then it’s time to return to the basics – the basics of good record keeping.
It is essential, however, that you make the effort to determine the precise financial condition of your business. It is as critical as maintaining good customer relations.