In a universe full of orderly chaos, the second rule of thermodynamics
applies which states:
In a system once full of control, full of measurable reliance on results,
entropy and randomness always increase.
Think of a drop of food colouring in a glass of clear water. One drop will decay the clarity of the
water. Up to the point where the colour
cloud devoured all the clear space in the class. In a random cloudy pattern.
How does this apply to accounting and your business?
The ultimate reason for keeping accounting records is control. Control of your assets like cash and
inventory. Control of liabilities like
your supplier accounts. And without
these controls the second rule of the
universal thermodynamics will apply to your business. The one drop of negative input will disburse
all the way through your control system, the effect will cloud your judgement
and decision making ability…
It is our jobs as accountants to not only assure the accuracy of your
financial data. But to ensure that your
control methods in your business will remain stand fast against a multiple
factors like business growth, economic changes and any other force presenting themselves.
The relationship that you have with your accountant is a relationship of
too and throws, up and downs and in and outs.
We should be an integral part of your business operation. Many business
owners are under the impression an accountant is only a person they need just
in time to keep them out of hot water. But they forget the boiling frog
principle.
We are trained to keep your control procedures in line with your
business’ needs and standards. And most
business owners does not utilized this trait and do not ask for advice. They forget to ask the question: “Am I doing
everything possible to protect my business against risk?”
Risks like “Audit Risk”, “Discovery Risk” and “Inherent Risks”. The most common risk factors in any business.
In order to protect your business, no matter how big or how small,
against the second law, of make use of your accountant!