Empower Your Business

Accounting is Just the Beginning

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Sensible Business Principles Are the Answer

Being back in the UK brings forth a feeling of déjà vu. Apart from being too many people, too much traffic (with more and more traffic restrictions) and being just too busy, just like here in NZ there is an ongoing debate about how to make ends meet.

Although necessary, the funding of educational and welfare systems, the building and maintenance of infrastructures or national defense (to name a few) are a huge financial burden to the taxpayer.

If business owners ran their finances like the UK or NZ governments, we would have gone bust long ago. It is not pretty basic? If we spend more than we earn, someone else has to provide the necessary funds and if we borrow too much, we become insolvent, in which case we become a financial risk both to ourselves and to others. Indeed, the law says that when we can’t make ends meet anymore, we should stop trading and give up. Why should a government or country be any different?

In the old days local councils used to be run by businessmen who understood budgeting and how to run an organisation within its means and yes, even to make a profit to enable expansion and capital infrastructure projects and expenditure. I reckon there’s quite a number of my business owner clients in NZ (and previously in my client base in the UK) who could get to grips with running the economy and country, slash the budget deficit and stop wasting our money paying excessive interest charges much better than any politicians.

Applying sensible business principles, when running a business or a country really is key to success and prosperity.

If you need help in applying common-sense business principles in your business, contact Nick on 0800 ASK NICK or email nick@abac.co.nz