Strategic Management From Failure To Success

Managers cant be 100% effective at all times, but there are probably some managers who are 100% ineffective sometimes.

A great decision can negate many slip-ups in strategic management on the road to success.

For an excellent example, see Steve Jobs and Apple. Jobss organisational deficiencies and interest in management in general were such that he recognised them himself. As a result, he brought in a highly reputed Procter & Gamble manager to take care of business while Jobs concentrated his technological and marketing genius on the products.

However, this in fact turned out to be a failure of strategic management. The imported manager was soon at odds with Jobs and proceeded to engineer the dismissal of Apples genuine business genius. That actually represented an even worse error of strategic management, and Jobs eventually had to be brought back in to rescue a rapidly sinking ship.

His efforts in rescuing the business were masterful; the basic computer range, in spite of a low market share, has been at the forefront of innovation and customer satisfaction. Apple has also transformed the music industry with the iPod and Jobs confirmed his genius with Pixar and computerised animation (to his own significant financial benefit), and also showed the vital point that, if youre doing the right thing, you can get away with mistakes.

When IBM entered the PC market that Apple had created, the latters strategic management policy of insisting on a proprietary policy condemned the smaller firm to a vulnerable existence on the fringes of a market dominated by an IBM operating system owned by Microsoft and available to all.

The strategy error of ignoring the customer appeal of compatibility accounts for the vicissitudes of Apples finances, which led to the humiliation of Jobs being forced out. To his credit, the Apple reputation for innovation was maintained and the Macintosh has remained an impressive product.

The company sits well down the big business league; behind Microsoft in the Fortune 500. Apple is no doubt paying the price for its high investment ratio.

But that simply goes with the strategic management in question. Heavy spending on new products and processes is necessary when it comes to leading the way in innovation. Apples strategy of offering customers what they want has to be the best policy.

A Safe Simple Successful Etf Investment Strategy

The website LearnPPT.com is an invaluable online resource for understanding and improving your business strategy knowledge. It contains a large library of PowerPoint documents outlining different types of business strategy frameworks and concepts. Their strategy and presentation materials have been used across the wordl in over 45 countries in global Fortune 100 corporations. There are many business documents covering secondary business units, such as governance, cost reduction, and IT. In its growing collection include corporate strategy presentations, business analysis documents, Excel-based financial analysis models, and business presentation templates (such as fishbone diagrams). LearnPPT asserts that all products were created by former strategy and management consultants from big name consultancies, like McKinsey and Bain.

A common business problem many business frameworks aim to solve is the challenge of achieving sustainable growth. The fact is that most companies have difficulty achieving significant growth, year over year. Over the last 50 years, Fortune 500 companies experience a median growth rate of in less than 8% in real terms (and under 10% in nominal terms). Furthermore, real revenue growth fluctuates more than ROIC ranging from 1% to 11%. Companies achieving greater than 20% sales growth typically dwindle down to 5% within 10 years. Only about a third of the Fortune 500 companies are able to sustain sales growth above the national GDP and generate returns above the S&P500. Also, 90% of them are focused across the 4 sectors of Financial Services, Life Sciences, Technology, and Retail & Distribution. For those companies that do achieve high growth rates, these growth rates also decay quickly. In particular, enterprise companies struggle to grow.

Any great management consulting has a suite of classic and emerging business frameworks. Over the past 50 years, leading consultancies, such as McKinsey and Bain, have structured problems into frameworks that are widely used in the corporate world today. Many such frameworks and business notions hinge on the seminal thought leadership of Michael Porter, the father of modern day business strategy. Consulting firms and consultants practice these frameworks to look at, evaluate, and solve a number of different types of business problems, which occur in different business scenarios.

When a projecthas been backed by the business case (which is both financially and non-financially) and gets buy in from the management team, the business case ppt is then maintained on an ongoing basis and refined to track the business engagement?s progress against the initial financial projections and key financialassumptions. Developing a business case is a thorough process, requiring both data-driven and qualitative research and analysis. This powerpoint then becomes a working document used during the initiative tracking process.

Business strategy development is an expansive but important part of any organization, enterprise or small, and therefore, there are numerous business frameworks geared towards this functional area. To begin with strategy development, you should frame your strategic challenges by defining where you want your company to be, how you can get your business there, and what your current state situation is. The evolution from your current state to your desired end state is a matter of strategy development and execution of that strategy. Even though the end goal of any corporate strategy is winning, it involves a number of important pieces, including defining your company?s value proposition, competitive advantages, and organizational transformation.

Different size businesses naturally experience different challenges and thus, take on varying approaches to managing their business strategy. A global conglomerate will utilize a more structured strategic management model, due to its greater size and scope of both business. A SMB may be more entrepreneurial in its approach to business growth and its operations are often much more lean. Some companies may be in the early growth stages, while the established multi-nationals are in the sustain stage.

One of the often created financial spreadsheet models in any organization is one for a capital budgeting business case. The business case typically takes the form of an Excel spreadsheet or can be a business case powerpoint and quantifies the financial components of the project, projecting key metrics for making any important business decision: for example, NPV, Return on Investment , Payback Period, Cost of Investment. As a matter of fact, any business initiative requiring capex should be built upon and justified by a business case spreadsheet. This document will also be tracked on an ongoing basis to gauge the success of the undertaken initiative.
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Creating Online Business Ideas

Creating Online Business Ideas

Within this article today on creating online business ideas, we will be giving you a few different websites to get yourself thinking. When you are thinking about and creating online business ideas, the best ideas can come from observations that you make through your knowledge of the subject. Taking the time to read and remain current with online marketing and business trends will end up paying great dividends for you if you can use this information to your benefit.

The first website that we would like you to visit to help in creating online business ideas for you is www.clickbank.com. This website is very valuable because it has many different products that are for sale so you can see what the current trends are as far as top sellers, etc.. This will go in line with what you will learn in the second paragraph because you’ll want to see if you can improve potentially on current products that are being offered.

The second website that we would like you to visit to help in creating online business ideas for you is www.affiliateprograms.com. This website has many different affiliate programs which you can join and promote or it can give you some ideas as to how you could change potential programs. If you take your time and look through how these programs are marketed, you may be able to see where you can make a change and offer a better product. Much of the improvement that comes through business on the Internet as well as off-line come in the form of improvements on current products. This is what you would be doing if you look at these affiliate programs. See where you could potentially improve what they have to offer. Take their program and offer it with a twist.

Hopefully these two websites have helped you in looking for ideas to improve on. To get new ideas to develop on the Internet you will have to take the approach of traditional business. You must study the marketplace and then create a product that fills in the current need. If you just create a product because you think it is cool, that is not necessarily going to lead to success for you. You need to see where someone has a need that you can fill and if you can do this, you will have great sales. See what your competition is doing to solve needs and do this just a little bit better. Also see what types of customers would shop online at your particular store and also see the culture of these people. By taking the time to see what your competitors offer as well what people who visit your site are looking for, you are putting yourself in a great position to be able to fulfill their need. This will lead you to being able to create online business ideas almost at will. Ideas are most powerful when they are backed by research because there is a solid basis for their success.

Using Your Content For Internet Marketing

Using Your Content for Internet Marketing

If you are currently marketing your business online and have not put a great deal of thought into the content on your website, you may be making an incredibly costly mistake. The content on your website is invaluable for a number of reasons. First of all it gives visitors to your website their first impression of your business and the products and services you offer. Additionally, well written content can be instrumental in selling your products and services to your potential customers. Finally, the content on your website can influence the size of the target audience you are able to reach by helping to improve your search engine rankings. With your content capable of doing so much, it is clear you should be hiring a professional content writer to assist you writing the copy for your website. This article will delve deeper into the importance of providing accurate, concise and informative content on your website when you are marketing online.

One of the most basic reasons why the quality of the content on your website is so important is because visitors to your website will likely form their initial opinions of your website based on the content on your website. If the copy is poorly written, does not hold the visitors attention and does not promote your products and services well visitors are likely to exit your website without making a purchase. Conversely, if the copy on your website is well written, engages the reader and promotes the products and services you offer the visitor is more likely to investigate the website further to learn more about the products and services and may make a purchase. The content of your website will be one of the aspects of the website which is first noticed by visitors so it is important for this content to be well written.

Well written sales copy can also be very persuasive and may compel visitors to the website to purchase the products or services offered on the website. This is important especially if the main purpose of the website is to sell the products or services. The sales copy should accurately describe the products or services offered, stress the importance of these products and services and compel the visitor to make a purchase. All of this should be done without appearing to be blatantly advertising the products and services. Writing this type of copy can be quite complicated and typically requires hiring a sales copywriter who is experienced and skilled at writing this type of informative and persuasive content. Sales copy written by an amateur or an inexperienced writer will not likely be as effective as copy written by a professional with a great deal of experience in Internet marketing.

Finally the content on your website is very important because it can greatly influence your search engine rankings. This is critical because high search engine rankings help your business to reach a considerably larger audience. Internet users are typically looking for information quickly and want immediate results to their inquiries. Search engines understand this profile and write complicated algorithms which help them to supply the most relevant websites when a user searches for a particular word or phrase. This is important to business owners because Internet users realize the value of search engines and are likely to only visit websites which rank well in the search engines. This includes websites which rank on the first page or two of search results. Your business might sell football jerseys and you may have a well designed website, a superior inventory and excellent prices but if your website does not rank well in search engines you are missing out on a great deal of free advertising. If your website lands on the third page or lower most visitors who search for relevant terms will not likely visit your website because they will have found what they were looking for on earlier pages. This is where the content on your website becomes important. Websites containing content which has been optimized for particular keywords will likely rank well with search engines. Hiring a writer skilled in writing optimized content can help to improve your search engine rankings so you can reach more potential customers.

Technological innovation and Survival

The idea truth developments through a huge dance of essential atomic geometrical types with an ethical purpose became the reasons for technology in 3rd Century BC People from Greece. Plato’s Universities were known to it as the Technological innovation for ethical finishes. Epicurean University is known to it as the Technological innovation of globally really like. The action of the heavenly satellite TV, echoing the atomic dance of way of life was seen to affect the feminine design. The ethical purpose, in this case, was organized to describe mothers really like and concern for your children, giving sex a potential endless ethical value.

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Greek philosophers recommended that trust were not part of the atomic purpose and others handled that conventional social benefits introduced about the improvement of humankind. An essential conversation at that time was that healthy human development required a healthcare understanding of infinity with zybooks answers. This understanding was associated with a very well-targeted joy of way of life associated with the long term atomic dance making a desire to like and protected children.

Greek technology originated to save the community from the destruction process, recorded within the non-renewable record. In particular, the term ‘savior’ used to teachers of the Epicurean school. The Roman Government considered this idea as a risk to the total amount of their Empire. However, it was a target of Religious perception during the 5th Century AD. By that time technology was a system handled by spiritual dogma for the potential of a military threat rather than considering the endless ethical objective of the geometrical atomic dance of way of life.

The mathematical understanding of the dance of way of life under spiritual control during the Black Age groups was about making sure that a particular creed designed technology to protect itself from the military threat. Sexual selection centered upon the physical features of the knight class, echoing the basic success mindset of the past way of life in the world, most of which had become disappeared. Unlimited mathematical questions became completely directed within all healthcare considering as a treasonable heresy. Giordano Bruno in 1600 was used existing by the Religious church in the investment for teaching about it at Oxford University.

The resulting in excellent law of technology became one of risky development toward certain destruction and therefore cannot be considered as ethical. Einstein’s professional, who initially made the decision with that unlawful challenge, offered the fix for your problem. His “we can’t fix problems by using the same kind of considering that we used when we made them” resulted in technology needed to improve its controlling.

Your Gateway Of Perfect Business Accounting Solution

The majority of business enterprises starting by several online marketers and most of them are seeking to handle their complex book-keeping as well as tax accounting solutions that can make sure all the business tax and accounting requirement in a suitable way. Whether you are looking for a dependable tax and accounting consultant then you need to choose a best one which can assure to provide you an overall accounting and taxing solution for your entire business need, which can be cent percent reliable and trustworthy, then you can surely Accountant San Jose Ca for a complete business accounting solutions.

A Perfect Accounting Consultant for a Perfect Business

Your tax and Accounting Firms in San Jose can give you a best possible solution for all basic accounting and taxation need with other additional benefits with necessary applications. Despite the fact some of the business enterprises generally take few additional managers for this purpose, but choosing this kind of firm in bay areas will surely help you out in this regards. How a perfect tax consulting firm can help your business, that you will have to judge from your business perspective. For instance, sole dealers, everywhere in the further business need, to enter directly into cooperative, or possible to set up them as a small scale business.

A Reliable Tax Consultant the ladder of business success

Most of the Indian CPA San Jose offer specialized services for the purpose of personal as well as business taxation and accounting requirement in time. Let us see how a good tax consultant can help your business.
A dependable tax consultant can helps your business to touch the ladder of success in business.

A reliable tax services San Jose can help to avoid unwanted or unnecessary tax and accounting and legal issues.

A complete business tax and consultancy need a particular up-to-date tax and accounting reports for your business to grow further.

In time taxation and accounting solutions for further need.

How a tax and accounting consulting firm can manage all your tax-accounts need to manage your business better that you will be able to understand when your business will run smoothly without any accounting or tax hurdle. For that reason you can hire Tax preparation San Jose ca a great tax and accounting consultant in San Jose area. So, it is generally very important to find out a good tax consultant who can help you to provide a cluster of business needs like organizing, planning of taxation etc. for your overall business growth.

Ethics In Business And Accounting Decisions

Depending on the type of business, the facts and circumstances surrounding accounting decisions may not always make them clear cut, and yet the decision may determine whether the company shows a profit or a loss in a particular period! What are the factors that influence business and accounting decisions, and how should these factors be weighed? Generally, three factors influence business and accounting decisions:

The economic factor states that the decision being made should maximize the economic benefits to the decision maker. Based on most economic theory, every rational person faced with a decision will choose the course of action that maximizes his or her own welfare, without regard to how that decision impacts others. In summary, the combined outcome of each person acting in his or her own self-interest will maximize the benefits to society as a whole.

The legal factor is based on the proposition that free societies are governed by laws. Laws are written to provide clarity and to prevent abuse of the rights of Individuals or society. Democratically enacted laws both contain and express society’s collective moral standards. Legal analysis involves applying the relevant laws to each decision, and then choosing the action that complies with those laws. A complicating factor for a global business may be that what is legal in one country might not be legal in another. In that case, it is usually best to abide by the laws of the most restrictive country.

The ethical factor recognizes that while certain actions might be both economically profitable and legal, they may still not be right. Therefore, most companies, and many individuals, have established standards for themselves to enforce a higher level of conduct than that imposed by law. These standards govern how we treat others and the way we restrain our selfish desires. This behavior and its underlying beliefs are the essence of ethics. Ethics are shaped by our cultural, socioeconomic, and religious backgrounds. An ethical analysis’s needed to guide judgment for making decisions.

The decision rule in an ethical analysis is to choose the action that fulfills ethical duties responsibilities of the members of society to each other. The challenge in an ethical analysis is to identify specific ethical duties and stakeholders to whom you. Owe these duties. As with legal issues, a complicating factor in making global ethical decisions may be that what is considered ethical in one country is not considered ethical in another. Ethical training starts at home and continues throughout our lives. It is reinforced by the teaching that we receive in our church, synagogue, or mosque; the schools we attend; and by the persons and companies we associate with. A thorough understanding of ethics requires more study than we can accomplish in this book. However, remember that, when making accounting decisions, do not check your ethics at the door.

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Review On Business Accounting Software By Sage And Microsoft

Accounting is one of the most vital processes in any business. To say the least, it is even more important than manufacturing goods and selling them. Flow of revenues and expenditures ultimately decides the fate of a business as does its proper management. The requirements of every business may vary, but the general requirements of a business like collection, classification and analysis of financial data is what constitutes the crux of accounting.

Nowadays, it is becoming a norm to purchase accounting software before starting a business. You can find accounting software for both small business as well as large businesses. In fact, a whole basket of accounting software programs is there to choose from. Depending on the type of business you have and how you run it, you have to choose the accounting software that compliments your business, instead of being a limiting force to it.

Before reviewing any accounting software, it is important to classify the market of accounting software in the following manner:

a) Small business/personal accounting software is targeted at home users. Such software are simple, easy to use and inexpensive. They perform simple functions such as management of budgets quite at ease.

b) Low end accounting software is known for its ‘single entry’ products. It serves a single national market quite easily.

c) Mid market accounting software for mid-level businesses serve multiple national accountancy standards. You can do accounting in numerous currencies.

d) High end accounting software is also known as Enterprise Resource Planning or ERP software. These expensive solutions cater to the needs of huge organizations.

Since the mid 1990s, with the entry of Microsoft and Sage, accounting software market has simply evolved. In fact, it is simply increasing at a break-neck pace. There are various good accounting software in the above categories of accounting software. Selecting the best one is not that easy.

In the small business/personal accounting section, the best accounting software would doubtlessly be the Intuit’s QuickBooks Accounting Software pro edition for small business. This accounting software has all the accounting features necessary for small businesses. QuickBooks Small Business 2006/ 7, through its time-saving features and improved functionality aids management of business. By applying online accounts management of bank statements, this software easily helps in integrating bank records in a smart way. With this software, you can rule your growing business accounts effortlessly and productively.

One excellent software, targeted at the low-end accounting software market is Sage MAS 90 ERP/MAS 200 ERP. This software is also applicable in mid-market accounting software market. This software encompasses different worthy solutions. Some of them are e-commerce, payroll, financial reporting, customer relationship management, core accounting and much more. This is an award-winning accounting software. With key processes like bill of materials, inventory management and job costing, it aids in the management of business. The advanced version MAS 200 ERP has the extra function of a client/server platform. It is known for its scalability and reliability.

In the high end accounting software market, several excellent accounting software, from some well known manufacturers like Microsoft and Sage are competing with each other for the market pie. No doubt, selecting the best one is difficult. Still, I would go with the ACCPAC Advantage Series which is known for its world-class multi-tiered functionalities. ACCPAC accounting software is perfect in the sense that it allows a business to tune its functionalities according to the needs. The ACCPAC Advantage Series is available in three editions- Enterprise Edition, Corporate Edition and Small Business Edition.

The Sage ACCPAC ERP system/Enterprise edition helps you to increase the productivity of your entire enterprise with end-to-end solutions, such as CRM. This high end software provides integrated set of end-to-end business management applications. Like other Sage software, this accounting software is known for its seamless integration, reliability and high performance which a large organization desires for keeping its competitive advantage over its rivals.

Sap Business One Accounting, Erp And Mrp Modules Implementation With Custom Elements

Small Business ERP market is experiencing stiff competition between such brand names as SAP, Microsoft Dynamics and Sage. As Business One is relatively new player on this market it often is considered when you have to replace outdated DOS based accounting application with something more contemporary. Traditionally mid and small business ERP market is divided between Dynamics GP formerly known as Great Plains and Sage products such as MASXXX. Plus competition from the small accounting packages includes QuickBooks, Peach Tree and similar brands. We see some evidence that SB1 is very popular in such regions as Brazil and Spanish speaking Latin America. Plus it is localized in such important regions as Russian Federation and China and this fact makes it popular in hub-and-spokes ERP architecture where you have to implement something simple in foreign subsidiary with consolidation to Corporate ERP in the Headquarters. Lets take a look at its functionality and technology:

1.Three Tiers Architecture. It could be described as having Database, Application Server and Client Interface layers. In such configuration custom software developers are barred from doing direct data feed or update via SQL Insert or Update statements and similar constructions. Everything should be done through application server which has reliable mechanisms to roll back failed database access. If you would like to program custom integration we recommend you either to do it via Software Development Kit or in Data Transfer Workbench. There are integration third party tools as well but outside of the scope in our publication

2.Batch Posting mode versus document posting to General Ledger upon its saving. If you are familiar with mid-market accounting packages such as Dynamics GP for example you might be curious what happens when I save something like AR Invoice in Business One. The answer is it is recorded in the module as well in GL as permanent record with recognized revenue and cost of goods sold. This was designed as small business ERP package with reasonably simple functionality. In order to give you the idea on what you are really making in cash based accounting method (opposite to accrual method as it is required for larger companies) SB1 allows you to restate financial statements from accrual into cash base

3.MRP. There is MRP wizard intended to automate your inventory replenishment by optimal quantity level or directly on sales or production order. In version 8.8X we see substantial improvement with the introduction of Purchasing Quote which could be used in requisition management and all sort of tenders where you have to document suppliers bids and decision making on the best deal selection

4.Discrete Manufacturing. It is pretty simple but it has such cool features as disassembly bill of material allowing you to disassemble returned finished product and place its components back on the shelves

5.Customization directly in settings. If you were working in ERP consulting firm back in late 1990th you probably remember how difficult it was to add custom field to existing entity or create new custom table and associate it with user interface. We think that SB1 architects were familiar with this challenge and created user defined fields and tables adding feature which automatically creates user interface to access and edit these newly created objects

6.Crystal Reports. This tool is recommended for managerial reporting, such as custom sales commission, customer statement or project profitability. There should be long term commitment to Crystal as SAP acquired Business Objects or former owner of CR

7.Competition. There might be several to consider especially Sage MAS 90 and Microsoft Dynamics GP Business Ready. Popular migration path to SAP B1 is from Great Plains Accounting for DOS as well as QuickBooks and Peach Tree. If you are thinking about abandoning GPA for DOS we would like to note that there is migration tool to Dynamics GP and if you choose this route you are skipping data conversion to SB1. It is possible to extract Great Plains Accounting master records via ODBC connection in Pervasive SQL Control Center. We do not recommend deep historical data export, cleansing and migration from GPA to SAP BO

8.Second Opinion. Accounting system implementation projects have reasonably good success rate however there are failed cases. Normal procedure to the way out of crisis is via second opinion. Consulting firms have their specializations and of course strong and weak points. If your original reseller was good in sales presentation, software sales and generic implementation it might be not an obvious fact to expect these people to be equally good in SDK coding or complex integrations with external databases

9.Selecting Consulting Firm. We recommend you to consider the following criteria: local versus nationwide, technology expertise versus generic functional consulting and user training and such additional criteria as expertise in your industry niche. If you are facing complex customization project consider somebody who runs so-called Software Development Factory

10.Multinational Corporation. Even if you have something like SAP R3, Oracle Financials, PeopleSoft or Dynamics AX implemented in your USA based headquarters it might be not feasible budget wise to implement it for small location somewhere in Brazil, Russia, China or Africa where Business One is localized and is probably better fit considering the operations magnitude

11.Industries and Business Niches. In our opinion it is good for generic wholesale, services, light manufacturing and distribution companies. There are add-ons to automate B1 in Retail, Warehouse Management, SCM, Recruiting, Food Processing, Mining, International Business and even consulting sectors

12.Please call us 1-866-304-3265, 1-269-605-4904 (for international customers, where our representatives pick up the phone in Naperville and St. Joseph, MI call centers). [emailprotected] We have local presence in Atlanta, Chicago, Southern California, South West Michigan, Houston and Dallas areas of Texas. We serve customers USA, Canada, Mexico and Brazil nationwide and internationally via web sessions and phone conferences (Skype is welcomed). Our consultants speak English, Spanish, Portuguese, Russian and Chinese. One of our experiences is international Corporate ERP and Consolidated Financial reporting

Keys To Good Accounting Practices

Keeping Good Records
One of the ingredients of good accounting practices is keeping proper records. No matter how small or large a business, it is essential to have a filing/storage system in place to store all financial records. Financial records include receipts, invoices, bank tellers, cheque stubs, withdrawal slips, bank statements etc. With the advent of online banking, emails and other forms of online communication, more businesses are storing their accounting information in virtual form. More invoices and receipts are now sent by emails to reduce carbon print, whilst more payments are been carried out online than ever before.

Despite the advancement in technology to aid accounting communication, it is essential that all form of records is kept safely for easy access. This is crucial for accurate financial reporting and business decision making. If a business stores more information on IT systems than files, then a back-up system is important for added security of data. Filing systems must be easily accessible preferable in chronological order. It might also be necessary to keep records of incoming paper-format financial information on a system as back-up.

For taxation purpose documents – paper or computer generated must be kept for a minimum of five years after the end of the accounting period of the business.

Accounting Systems
Accounting services vary from business to business; some companies prefer to outsource their accounting to an accounting firm or freelancer accountant. Another option is to hire staff to carry out all financial functions in-house whilst some small business owners choose to perform these accounting functions themselves.

The accounting system a business chooses must be able to meet the needs of the business. A small business might be better off hiring an accountant, rather than invest in a system there will be no time to operate. A large organisation might be able to afford a good accounting package, but the system will be of no use if there is no competent staff to operate it. For effective accounting, businesses must ensure they match their accounting needs with the appropriate system including outsourcing options.

Monitor Information
A business account is like the flip chart at the end of a patient’s bed which shows the vital signs of that business. To keep the business vitals in good condition, businesses should constantly appraise their financial status to ensure a good book balance.

Most medium to large organisations carry out a monthly, quarterly or regular form of management accounting exercise. These reports are for internal use and it enables the business to identify its financial position on a consistent basis. Though meant for internal purposes, it is an effective way to monitor performance and plan for the future.

Legal Requirements
Businesses must satisfy legal accounting requirements whilst in operation. It is also important that they meet the need of the various stakeholders in the company. These stakeholders have a legal requirement to certain financial information, which must be presented in an acceptable format.

Accounts Statements must also be prepared and filed with the relevant Government bodies – in the UK these are HM Revenue & Customs, Companies House and the Charity Commission. They must be in the right format and submitted by the deadlines set by the authority concerned. Failure to file accounts in the right format and at the right time may result in a financial penalty, except in extreme circumstances.

It is therefore essential that an appropriate book-keeping system is in place to ensure information is captured accurately and efficiently. It is also crucial that businesses have “best practice” policies in place to ensure accounts personnel complies with legal requirements.

Account Personnel
Competent accounting personnel are as valuable as the information they provide. Most businesses require the assistance of experienced accountants to collate and file their accounts. Medium to large companies generally recruit their own personnel to look after their company accounting processes. With the credit crunch hitting businesses profit margin, a lot of businesses are outsourcing their accounting services to external firms. Some of the main advantages of outsourcing are the reduction in staff related costs and the wide range of expertise gained from reputable accounting firms.

Whatever product or service a business provides, ethical accounting practices will ensure a business is able to identify its financial position and plan according to ensure its survival and longevity.