By Bob Fournier
The world continues to see financial crisis after financial crisis. We have seen countries on the brink of bankruptcy, large corporations tittering on the edge of extinction.
What does this have to do with the Revelstoke business community?
These world situations have demonstrated the need for accurate and timely financial information delivered to the right people at the right time.
This same principal can and should be applied to every business everywhere including Revelstoke.
Many small business owners view “bookwork” as a necessary evil, having little value in their day to day operation. Nothing could be further from the truth. Knowing your company’s current financial position is the difference between success or failure and frustration or confidence.
Timely preparation of the financial results for your company can identify areas of concern before they become problems or positive trends on which you can capitalize before you miss the opportunity. Even if you believe your company is healthy, timely prepared financial information will enable you to plan, invest, develop and be miles ahead of your competitors.
It has been argued that financial statements are prepared for tax purposes and as a result don’t show the true value of the business. The people who use the financial statements, owners, financial institutions, investors, know how to read and interpret these statements. Fear that the statements will under value and understate the company’s position are mitigated by the fact that professional can read and understand these statements.
The economic realities are also dictating that financial institutions need to be kept accurately informed so as they can react to the business client’s requests in a timely manner. Tardiness in producing reports is a negative reflection on the business owners’ ability to manage their business.
Reputation, relationships, integrity are still extremely important and are not ignored but world economic realities can not be ignored either. The world, even in Revelstoke can change without notice, and we have seen that.
As a business owner the more knowledge you have the better you are equipped to manage challenge. Financial Statements are a tool, no different than a hammer, or saw, or wrench, or computer. It’s a needed part of your business and I would encourage all business men and women to maintain accurate financial records and have their financial statements prepared in a timely a manner and use them to your fullest advantage.
Bob Fournier is Revelstoke Credit Union’s manager of commercial lending