Recording business transactions into the company’s general ledger has led many business owners and accountants into the procrastination booby trap. It would be unfair to hastily point an accusing finger at them and say they are lazy and undetermined entrepreneurs. The task is simply overwhelming which makes postponing it very tempting.
Do It Another Day
There are those who claim that procrastination can be a good thing. According to some authors and psychologists, procrastination helps the person avoid committing a worse mistake. However, for someone recording voluminous accounting data into the general ledger under a fast-approaching deadline, putting off the task could spell disaster for the company.
Accounting 101
The general ledger is the repository of all the financial transactions made all way back to the very first day that the company opened for business. It serves as the backbone of the company. The very life of the business and the staff hangs on it. The ledger holds all information relevant to the company’s finances such as:
Assets
Revenues
Owner’s Equity
Liabilities
Expenses
The ledger must constantly be updated with the latest accounting data to make it easier for the accountant to come up with a reliable financial report. If someone in the accounting department delays and then eventually forgets to log entries in the books, the financial report will definitely be compromised. Prompt and timely recording of accounting data, therefore, must be observed.
The Business of Procrastinating
A faulty financial statement would wreak havoc not just within the accounting department but also would inadvertently cause the manager to make bad business decisions. It will also adversely affect cash flow, cause alarm and confusion among the staff, and damage the reputation with customers and suppliers.
Time is Gold
Procrastinating leaves the company with little time to accomplish the daunting task of reconciling its financial statements and meeting its goals. Time is a very valuable business asset. Businessmen and entrepreneurs should adopt measures to save and make the most out of it.
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