Importance of Business Accounting

Get the latest Flash player

MyOwnBusinessInc
December 11, 2008

Video from our FREE Online Business Course http://www.myownbusiness.org Session 8 Accounting and Cash Flow Question: "Why is a good understanding of accounting important for running your own busi...

Video from our FREE Online Business Course
http://www.myownbusiness.org
Session 8 Accounting and Cash Flow

Question:
"Why is a good understanding of accounting important for running your own business?"

Maureen Costello
Wholesale Distributor

Topics covered in this video:
Understanding business accounting, cash flow, taxes, loans

Transcript:
I think that if an entrepreneur doesn't have a good understanding of accounting there will be a very high probability of failure. Accounting is the way you keep track of how well your business is doing. It's how you keep track of your cash. If you run out of cash, even if your sales are growing and your profits on the books are high, you're out of business. You can go bankrupt even with a successful business. So the only way you're going to know is if you do really good accounting, do cash flow projections and really watch your cash. So that's number one.

Secondly, you have pay taxes; you have to be in compliance with the tax laws. If you're not very good with accounting you're going to have problems with the IRS. They too can put you out of business. So you want to be sure you know what you're supposed to be doing from an accounting point of view. Also, you won't be able to get bank loans if you don't do a good job at accounting because you have to have financial statements that you can bring to a bank that are in the format that they are accustomed to, in order to gain their confidence to loan you money. So there are a number of reasons why being familiar with accounting and making sure you have very good accounting for your business are important to you.

Category: Education

More From: MyOwnBusinessInc

Play All Stop Autoplaying | Play Next

QuickList(0)

Clear | Save

1 ratings

2,614 views

Favorite

Playlists

Flag

Want to add to Favorites? Sign In or Sign Up now!

Want to add to Playlists? Sign In or Sign Up now!

Want to flag a video? Sign In or Sign Up now!

Statistics & Data

Video Responses (0)

This video has no Responses. Be the first to Post a Video Response.

Text Comments (1) Options

Cellina21 (10 months ago) Show Hide

Marked as spam

This is good information!!

Showing 1 of 1 comments

Show More Comments

View All 1 comments

Would you like to comment?

Join YouTube for a free account, or sign in if you are already a member.

YouTube	Programs	Help	Policy	Discover
Contact Us	Advertising	Get Help	Privacy Policy	YouTube on Your Phone
YouTube Store	Developers	YouTube Handbook	Terms of Service	YouTube on Your Site
Press Room	Partnerships	Community Help Forums	Copyright Notices	YouTube on Your TV
Business Blog	Content Management	Safety Center	Community Guidelines	YouTube RSS Feeds
YouTube Blog		Creator's Corner		TestTube

Add YouTube to your Google homepage

Current Location: Worldwide Show locations