3 Reasons Why Accounting For Business Is Imperative To Success

Business requires your utmost attention at all times. If you dilly-dally with your business operations, someone, somewhere will take your share of the profits and hang you out to dry. Preparing financial statements for any business is imperative to success. Without proper accounting, it would be impossible to identify the financial standing of a business organization. In order to assure and convince the shareholders, investors, and creditors etc. about the business´s glowing progress, it is essential to prepare financial statements as evidence. Here are 3 reasons why it is of paramount importance for a business organization to focus on accounting!

  1. Accounting helps identify costly mistakes

If the business prepares financial reports and statements on a regular basis, you will be able to identify costly mistakes and detect fraud, theft and illegal activities. It is easy for an accountant to identify illegal activities through discrepancies in the numbers. Hence, companies pay through the nose to hire capable accounting firms identify if anyone has tampered with the business or if there is an error in the financial statements. In recent years, investment banks have committed many accounting misdeeds in a bid to cover huge trading losses. And, a lack of attention to the financial statements and reporting system allowed the banks to hide these losses. Therefore, regulators these days keep a keen eye on the internal accounting methods of these banks. Hence, if you don’t want to be in hot water, it is in your best interest to prepare financial reports frequently.  

  1. Accounting helps you make payments on time and prepares you for tax time

It is necessary to prepare financial reports so that your customers pay you on time. In addition to that, accounting also helps you make payments to the vendors on time. If the reports are updated on a regular basis, you will be able to manage your inventory properly, pay salaries to your employees and give dividends to the shareholders on time. The financial reports will also help you know how much interest has to be paid on the loan you took to run your business. And, if you are looking for ways to reduce your tax burden, you will require accurate financial numbers. If you don’t have the required information, your business will suffer and the resources will be depleted long before you realize what’s happening.  

  1. Accounting helps you make better decisions

Financial statements are necessary for identifying the financial standing of a business organization. It is necessary to prepare them because it lets us know if we have enough money to reinvest in the business. They tell us if our business is performing well or underperforming, allowing us to monitor the progress of the business and also helping us identify opportunities for growth. And, if ever a day comes where you might have to sell your business, you will be asked to provide a historical record (financial statements) of the overall success of your business.

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Rubbish Removal: What We Save and What It Costs

According to the latest calculations from Highways England, it is costing about £8 million a year for rubbish removal from the roads in England. Moreover, these funds are coming straight out of the pockets of hard working tax paying citizens. What makes this even sadder is the fact that this same money could be going towards the community in so many ways, if people would just refrain from discarding their rubbish illegally and in public places. For every bag of rubbish that has to be collected, the same money could be used to fill a pot hole.

People who litter rarely think twice about the costs of what they are doing. They buy a snack, tear open the packaging, eat the snack, and then toss the wrapper wherever they happen to be at the time. They may pass a fly tipping hot spot and not have the moral conviction to not “pile on” to this illegal act. They may be more motivated by how much they think they’ll save than what it will cost society to abandon their trash on public roads.

There are costs that go far beyond the direct financial burden of agencies like Highways England removing rubbish. Detectives have to spend time searching for offenders and we all know time is money! Local councils have to devote time on their agendas to figure out how to deal with littering hot spots in the community. Public employees have to spend time planning out ways to encourage more people not to litter. Local organizations have to use their resources and time for litter picking and other programs on rubbish removal. These are all “hidden” costs that people don’t always realize.

There are also costs to entire families if one member of the family gets caught littering. If a fly tipper is caught red handed, he or she is fined a minimum of £400. This can have a profound impact on the household budget for the entire family, especially for families on tighter budgets. This can affect a family’s ability to acquire necessities like food and clothing. It can be the difference between getting a new piece of furniture or not. It can also impact the family vacation or the Christmas holiday.

If you happen to see anyone who is about to fly tip, you can intervene by letting them know how easy it is to schedule an appointment with Clearabee for rubbish removal right from their home or business. Let them know they can even get an estimate of how much it will cost by sending Clearabee a picture of the rubbish. If they refuse to listen and fly tip anyway, if you can do so safely, take a picture of them with your mobile phone or at least jot down an accurate description of the fly tipper, and a car license plate number if you can, and pass this information to the police. Even though it will be a hard (and costly) lesson for them to learn, the more word spreads that people are willing to do this, the less littering and fly tipping will occur.

There are also environmental costs when rubbish removal cannot keep up with the littering. According to WDC (Whale and Dolphin Conservation), approximately one million marine mammals and birds are killed each year as the direct result from getting entangled in discarded plastic. Off the coast of Scotland, many minke whales have been seen and photographed entangled in plastic. Some sea creatures, such as sea turtles, actually mistake the floating plastic for plankton food and ingest it, killing them from the inside out. Of course, there’s also the cost of unseemly rubbish heaps that decreases one’s ability to enjoy nature.

Some people mistakenly believe that littering food is okay because it is biodegradable. Further, these same people tend to think that discarded food does not need rubbish removal services because it will eventually decompose. However, discarded food is a very serious environmental problem. Often, it ends up in lakes, ponds, creeks, streams, and other bodies of water where it causes wide scale outbreaks of algal blooms. This depletes the water of oxygen and causes aquatic wildlife to die. Some human food is actually toxic to wildlife as well. Further, decomposing organic matter also produces methane gas that can cause uncontrolled fires and contributes to the greenhouse effect.

While there are always costs associated with rubbish removal, the savings far outweigh the costs. Clearabee is a company that was created with this idea in mind and has pledged since day one of their operation to offer rubbish removal services that keep as much of the litter out of the landfills as possible. When Clearabee picks up rubbish, they purposefully look for a Waste Transfer Station that will either upcycle or recycle the rubbish they deliver to them, with a preference for upcycling. In fact, they maintain a very extensive database of these Waste Transfer Stations across the entire country so they can always know where to take the rubbish.

Companies like Clearabee, along with the collaborative efforts of conscientious citizens, are reducing the costs of rubbish removal, while at the same time, increasing what we save. Hopefully, these efforts will continue to be contagious as more people begin to understand all the costs of littering, fly tipping, and allowing their rubbish to end up in landfills.

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Working From Home vs Working In An Office

I’ve been working from home for over three years now and the way I work sure has changed over the years. I was so used to working in a vibrant environment, having colleagues to share a laugh, a joke, a moan with – and to go from that to my own company was a big adjustment at first.

I love that I get peace and quiet at home (well, most of the time – these summer holidays sure are tough with a five year old and a seven month old!). But I do miss the all the hullaballoo that comes with working in a busy environment.

Furniture Work recently undertook an #OfficeJoys survey – they are a supplier of office chairs UK and they made a humourous video about working in an office compared to working from home.

Although I didn’t spend much time working in an office outside the home (my main area was retail), it does remind me just what it was like to work outside the home – the phone calls, the post it notes, the chat with the colleagues. I do feel that I am much more productive now working from home as I am completely in charge of my workload. If the project interests me, I take it on. If it doesn’t, then I don’t. Whereas working in an office I would have to complete all the menial tasks I was given.

The survey found that 66% of 1000 people surveyed would prefer to work from home – and I don’t blame them! Three quarters of people surveyed think that working in an office is more stressful than working from home but I am not sure I would agree – it is much more stressful having to control your own workload and make sure you are getting paid enough each month. 46% also said they would like to work from home because of the convenience of no commute.

Nearly one third said their biggest distraction when working from home was the television. I’m inclined to agree. When Jack is at school or Steve is at work, I don’t have it on when I am working but it has obviously been on more whilst Jack has been on summer holidays. It is very easy to get sucked into a TV programme when you are meant to be working! 22% said their children is the biggest distraction and I am also inclined to agree with that. Only so many times you can hear the word ‘Mummy!!!

I much prefer working from home but I cannot deny that I do miss having colleagues every now and again. I know I can turn to social media and chat to my blogging friends but sometimes you just need that face to face chat.

Do you prefer working from home or is an office more your thing?

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