Online Accounting Services and Making Sound Business Decisions

Posted by: Carol Post date: April 26th, 2011

Risk is a huge component of business decision-making. A large part of what makes decision making risky is our inability to perfectly forecast the future.

“Forecasting is both an art and a science. Let’s look at an example.”

Brenda and Roger own a mobile concession stand called Meals2Go. Out of their bus-sized stand they sell healthy sandwiches, salads and fruit, in addition to coffee, bagels, muffins, and other goodies for the breakfast crowd. They rent a small kitchen in which they hand-prepare all foods.

Meals2Go prices are very competitive and it has a reputation for excellent food, especially among the downtown business crowd and train commuters. As a result, Brenda and Roger want to add another truck, hire two employees and expand operations into the next town.

“Should Brenda and Roger take this step?”

Brenda and Roger will have to consider the current economic forecast, the cost of borrowing money and their own ability to manage a larger operation. Having good systems to gather and process this data is part of the “science” of forecasting. For example, a good online accounting service can help them stay financially organized while providing just the right amount of guidance and handholding.

Brenda and Roger also have to pay attention to the “art” of forecasting. They need to avoid interpreting the data a certain way just because it makes them feel good. They have to distinguish between events and circumstances they can control, and those they cannot.

Most importantly, they should resist reaching a decision prematurely. The mind must be given enough time to make connections between bits of data so a good picture of reality emerges. Dialoging with our fears and with each other supports this process. Tuning in to our Spirit, in whichever way works for us, is especially important.

Sometimes, despite our best attempts, we forecast incorrectly. Yet life is designed such that everything in our past, whether it appears triumphant or tragic, can become useful input for our next decision. Life is designed to support our dreams.

Carol E. Dubs, CPA
Arbor Accounting Online
Online Accounting Services

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