“I hate numbers,” Claude stated emphatically. “I didn’t get into business just to have to tie myself to a computer or a calculator. All this paperwork is driving me nuts. Give me one good reason why I should care about accounting!”
Claude’s brother, Gary, an accountant, smiled. He told Claude, “I can do better than that. I can give you a number of reasons why you need accounting. How did your business do last year? Did you make any money? How do you know that? What are you going to do this year? How much raw materials are you going to need to purchase in order to do that? If you were going to sell your business today, how much should you ask for it? You want to expand. You’ll need to borrow money for that. Who is going to lend it to you if you can’t show you can pay it back?”
Review Gary’s answer. How does it match up with the reasons accountants say are important for small businesses?
