http://www.canada.com/vancouversun/news/business/story.html?id=6d86864a-1991-4ebe-b2de-0cf76d741760
Summary:
This article is about most of the small business owners in B.C are optimistic for the falling economic. Recently, TD bank got a Small Business Survey which found out the mainly concerns to manage growth was maintaining cash flowing. TD bank also replies their survey that “they are a bright light in these darker economic times.” They are optimistic about small business owners are able to grow their business and take steps to effectively manage their growth. This survey is provided an important strategically plan for small businesses. For example, small business owners have better raise enough capital before starting or diversify services.
Connection:
The connection between the article and the text book are Chart of accounts and the accounting cycle. All the businesses need to provide chart of accounts that all the information recorded in the accounting system are generally summarized. The business required to follow the system of accounting cycle which is recording and reporting of events in the accounting system. If businesses follow those steps, it’s easy to read or analyze the statement. Owners or the authorities can easily to figure out how much cash flowing they have now. It’s very important to know this information because the business must have enough capital before they have new services or production in the falling economy.
Reflection:
After I read this article, I realized that the small businesses are easier to survive compare with the large businesses in the falling economy because the small businesses do not require too large amount of cash flowing. In this article also tells the reader that businesses must be analyzed seriously of the financing in the temperately time. The accounting cycle will be a very useful for the small businesses. However, this system is not that useful for the large company because they had too much investment, they do not have much cash flowing in their company.
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2 comments:
Although small businesses deal with smaller amounts of cash, their risks of being bankrupt are just as bad as large corporations with hundreds of shareholders. During this time of financial crisis, I am surprised at the amount of optimism from these owners; cash flow is at an all time low, which means a large possibility of a decrease in profits. Financial statements will have to be reviewed upon crucially, in order for owners to not waste cash. As they say in business, "The trend is your friend", and if that trend is not going in the right direction, they will have to make important decisions on how to spend their cash, and think of clever, and less expensive ways of marketing goods.
Raymond Chen
Block B
FAC 12
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