Certain business mistakes that could result to bankruptcy.

[Axis]

Majority of business bankruptcy and liquidation these days usually emanate as business mistakes and erroneous delivery. Businesses should try their best never to make mistakes and errors especially in areas of recording financial transactions that happened within the day-to-day activities of the business organisation. When business fail to record concrete and accurate information about the business in areas of financial dealings and doings. Such a business May be indecisive to finalize whether it is actually making profit or possibly running on a loss due to it inefficiency and ineffective recording of his books of account. In order to ensure the businesses never make mistakes and errors in areas of financial activities, they should make good use of a good transactionary recording system.

The best transactionary system a business can adopt is the computerized transactionary system which involves the use of computers and other method of computerized format to document transactionary activities for the purpose of decision making. When a business fails to make a decisions, from what is recorded in the business books of accounts, the repercussion can be bankruptcy and liquidation. Another possible business mistake could be selling inefficient and low quality goods and services, selling products and services of this kind, simply means that no customer or client would want to patronize you and then turn you would make no profit, making of no profit can in turn lead to bankruptcy.

 

[TOZZIBLINKZ]

A business organisation is absolutely existed in a particular country or economy for the purpose of making economic however in the process of making economic gain some businesses and counters problems as well as challenges and according to my research and study some of this business problems and challenges in business absolutely come about as a result of small neglected issues which would have been solved if the business manager was absolutely smart to observe that area. One of the mistakes as well as Harris majority of business owners absolutely fall into which absolutely results to the business bankruptcy and liquidation is failure to put into proper consideration figures as well as transactions that it's been recorded in the business books of account.

In order to encourage efficiency of a business books of account it is advised that business management should choose the best method of business documentation of records which is only a computerized method of business data processing as well as data documentation for future retrieval and easy analysation.