If you think that technology is going to make all the paperwork go away, think again. I have never printed so many documents in my entire life. At the rate I am going, I would have deforested one acre of trees once I am done auditing the company’s account. Pulp fiction!
One of my favorite business writer- Norm Brodsky revealed in his book ‘The Knack’: To really understand the figures behind your business, you must write them down with pen and paper, with the help of a calculator and nothing more. Yup, no excel spreadsheet. And this is one very handy advice.
The raw feeling of jotting down every transactions and actually seeing how each numbers relate to each other would really be an eye-opener to those who haven’t done this exercise before. Think of it like a diary, only that this one is full of facts and figures.
When you let computers do all the work, you lose that ‘connection’ with the numbers, and these numbers are the vital signs that would tell you what’s really going on in your business.
So, why don’t you give it a try and see how it actually helps you in analyzing your business’s financial health?