Accounting Information Chicago Illinois

Updated July 24, 2015
Accounting Information Chicago Illinois

Good Accounting Information Is Vital

The biggest difficulty that most novices have with accounting information is that they don’t understand the basics which create proper accounting information.

  • 1. Relevance – If you are in the business of selling paper clips, then the exact number of paper clips that you have in your inventory is probably irrelevant. You would need to count each paper clip in each box to get that information. How would that help you? Even the number of boxes would probably be irrelevant. But the number of cases you have would probably be helpful.
  • 2. Ability to Measure – As Einstein would say, many things that can be counted, don’t count. A perfect example would be a measure of your customer’s happiness with your product or service. Though quite important, there is no reasonable way to quantify this and put it into a financial statement.
  • 3. Timeliness – Accounting information must be of a proper time period. If you are doing a financial statement for calendar year 2012, the sales figures for 2013 are irrelevant.
  • 4. Completeness – You accounting must be a complete measure of whatever is being counted. If you are unable to do this, then you should work for the government.
    If you are having problems with your Accounting Information Chicago Illinois or have issues with your accounting in general, we would love to help. I enjoy hearing from my readers, and can be contacted at….

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    Chris Amundson is the President of Accounting Solutions Ltd., a full service public accounting firm of Certified Public Accountants and Enrolled Agents handling the bookkeeping, accounting, tax preparation, and audit representation needs of Businesses, Estates, Trusts, and Upper Income Individuals.