Fruit from the Accounting Tree Comes In Many Varieties

George Washington's act of chopping down the Cherry Tree could be a symbol of American small business, the Cherry Tree being the planning of small businesses, accounting being the foundation of planning(See Why Keep Good Records?)

Since about 1 in 12 businesses are considerably profitable (See Business Failure or Success?), and since considerable profitability may be influenced
strongly by the control that an entrepreneur exerts over his business, it seems to us that putting the ax away and letting the Cherry Tree grow and bear fruit is a good practice, perhaps as good for the business person as it is for the cherry farmer.

The entrepreneur who nurtures his accounting and bookkeeping bears fruit

in the form of:

  • Timely Financials (Profit (or Loss), Balance Sheet)
  • Cash Flow Forecasting
  • Creating Reliable Budgets
  • Pricing Products and/or Services Correctly for the Market
  • Enlisting the Support of his Banker(s)
  • Knowing Profit Margins (No estimates or Guessing)
  • Getting the Macro View of Overhead Costs