Belk On Business

Most business owners are intelligent and driven people yet over 80% of businesses fail.  The top two reasons businesses fail due are due to a lack of business experience by the owner and cash flow issues or lack of profitability.   Individuals start business for people, process or product, not for producing and generating financial reports.  Most business owners have a passion for what they do in hopes of achieving financial freedom.   The accounting system we use in the US is financial theory, an axiom, which is constantly in flux as to rules and regulations.  Additionally, the approach is impractical for most business owners.  It isn’t that they can’t read a profit and loss statement or understand the basic principles of a balance sheet, it is just that these reports don’t provide the day to day information they need to make decisions in their business. GAAP focuses on top line revenue creating the perception that an increase in top line/gross revenue will result in more profit