Value of Accounting for a Social Enterprise

-
Accounting is the systematic recording of an enterprise’s economic transactions and activities.  It is also the language of business.  Accounting for a small social enterprise is equally as important for large enterprises.  Reliability and relevance of accounting records is important to effectively manage a small social enterprise.  It helps guide the  entrepreneurs  of  small enterprises  to dispense decisions for the improvement of the enterprise.

An unreliable accounting record is detrimental to the  health and well being of the social enterprise. As an analogy, it is difficult for a driver to know where he or she is going if the windshield is dirty.  An accident is bound to happen.  This can be compared to an entrepreneur naively relying on an unreliable accounting record.  Decisions  premised on unreliable accounting records would definitely result in unfavorable consequences.  Accounting  is the language of business, faulty language will result in faulty responses.

Overstated assets, delayed recording, inaccurate recording of cost or expenses and a host of other inaccuracies in the accounting records would give the false impression that everything is okay until it is too late.

It would do well for the entrepreneur with the help of an able bookkeeper or accountant, although an indispensable cost, to ensure that the accounting records reflect the true financial state of the enterprise.  Quality decisions based on quality accounting records almost always result in positive outcomes.

Comments

Post a Comment

Popular posts from this blog

The Seventies - The "Disco" Era

-
Image
The seventies was undoubtedly the "disco" era.  As a teenager, I listened and danced to the distinct sound of that era. When "Saturday Night Fever" hit the movie theaters in 1978,  I became an avid fan of the Bee Gees and other bands that played the disco sound.   Besides listening to disco sound, I also mimicked dance steps like the "swing" and "L.A. shuffle" from a local popular TV show the "Penthouse Seven." I strutted my stuff every time  I danced with a partner at birthday parties held in friends' residences. Bands that dished out disco tunes during the '70s were  ABBA  with their  song "Dancing Queen";   Donna Summer 's   goosebumps-raising song "Last Dance."  Other bands like  KC and the Sunshine Band ,  The Trammps ,  Van McCoy ,  Gloria Gaynor ,  The Village People ,  Chic , and  The Jacksons   also flooded the radio airwaves in the '70s .   I even followed their progress over...
Read more

Grandfather@50

-
Image
I will be turning 50 before the  end of this year, and what better way to usher in my golden boy status is becoming a bonafide grandfather.  I now have a grandson, his name is Samien. He was born on April 25, 2012. His parents say that the name means "to be heard".  I guess their choice was right because when Samien cries, he is really heard by everybody. I noticed remarkable things in Samien.  While just a new born, he showed to us that he has strong legs and arms.  He can push himself upwards in the crib and was tireless in raising his small arms every  now and then.  Also, he is not the quiet type because he always cries and laughs unlike other babies inside the nursery who are peacefully asleep.  At three months old, he speaks amusing although unintelligible syllables.  Also, at three months, he is rather long for babies his age and quite heavy for a three month old baby.  He weighed in at 5 kilogram during his visit to his pedia...
Read more

Organic Rice in the Philippines For Healthy Living

-
Image
Do you prefer healthy living? Go organic rice! Health buffs would like to get their hands on real organic rice. If you're one of them, do you know which ones are authentic organic rice? This blog will tell you all you need to know about organic rice. Some people think that organic rice is red and brown rice variety only.  Not really. It comes in other varieties and colors such as white, black, etc.  The idea that red and brown alone are organic rice is wrong.  These rice varieties are now sold under specific brands in leading supermarkets in the Philippines, however, not all of them are organic rice. But how will you know if you're buying organic rice or not? Organic rice is farmed without using synthetic fertilizer and chemical pesticide inputs. Besides the inputs, there are other things to consider such as -  How was it planted? What were the farming methods used? Was there contamination along the supply chain until it has reached the end consumer? There...
Read more