Weak accounting system

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2.
Remember the problems from the school curriculum, where the hero bought some apples, then shared them, then was treated, and in the end he doesn’t know how many fruits are in his bag? Funny, but true to life. Often, managers, like the characters in these problems, don’t know exactly how many apples are in their bag, when exactly they need to get them out, and to whom they need to be given.

As a result, employees make unfounded decisions, funds are wasted, and a shortage of resources occurs.

For example, instead of sorting out the financial system, the company hires highly paid targetologists and tries to use new channels to attract traffic. Money is invested, but there is no result.

This is because without a developed management accounting system it is impossible to monitor financial indicators, control expenses and identify bottlenecks in business processes.

In our practice, there was the following case : the company is engaged in website development, the manager took on all projects in a row, and the management accounting system was conducted with minimal indicators. As a result, there are orders, but for some reason there is no money. After establishing management accounting, it was possible to morocco consumer email list identify weak areas and projects that do not bring profit. The manager abandoned them to improve the efficiency of the company, and the company's business went well.

3. Incorrect budgeting
Would you build a house without a preliminary plan?

It is impossible to build a business without clear budget planning. After all, a company is the same house with many structures and engineering systems.

Many entrepreneurs have difficulties in drawing up and implementing a budget. There is no control in budgeting. As a result, financial resources are used ineffectively, and there is no stability.

For example , a company produces food additives: it builds a new plant and opens a workshop. Since money is depreciating, and the company has accumulated enough of it, the management decides to buy equipment. But the problem is that business owners began to buy everything they might need. In theory, not in the near future. As a result, some of the purchased equipment is idle and will not be needed anytime soon at current turnover. And when the chance to buy a very valuable asset arose, there was suddenly no money for it.