Always Have a financial record in whatever business you own

[Iroh]

I wholly agree with you on the need to have an accurate financial record for a business, irrespective of if it’s a small business or a big one. It really doesn’t matter if you’re just starting up your little business or you’re the owner of a multinational corporation, you just need to have a financial record of your business.

Having an accurate record of your business transactions would, like you stated let you know if you’re running at a loss or you’re making some profits. Also, I think a clear record of your business would also improve your chances of being granted a loan from the bank for your business.

About your friend you mentioned, i think not having an accurate financial record of his business may not be the only cause of him not being able to pay his rent. Apparently he’s skilled at his job and gets a lot of patronage, where then is the money going to? Perhaps, he may be spending his money a lot faster than he can get more and a good financial record of his business might just put him in the right track.

[Silberman]

You don't have to be a big corporation before you keep a record of your daily financial transactions.

This caught my eye more than anything else. There should be lessons about maintaining accounting books for ab individual as well and it should be taught way way early. I am pretty much sure this can change many things in a persons life. I believe this practice is already there in the developed countries like US and Europe? Not sure but looking at the movies and series they do teach kids on how to manage the expenses and everything. This can only benefit them to survive alone without any support.

Those who think they are doing just fine with the expense management could be very wrong. I have tried to do such savings over long period of time but it doesn’t work that way. Somehow you end up doing lot of expenses which are unwanted. There needs strict policies and you should be loyal with them to have long term savings. It helps.

Whether you get this knowledge through the school system depends on where you live, personally I think accounting principles should be taught at a very early age, after all governments are expecting people to work for the majority of their lives, so people might as well learn how to use their money in more effective ways, but in many countries that knowledge is not taught until you get to college, giving a massive advantage to those that reach that level of education over those that do not.

[Frankolala]

OP, you must be a good business person with all that you have said. So many small scale businesses ignore financial records and this is what is very important for any business to grow.

Financial record is also important for future purpose,it will also enable you give accurate record of your business at the end of the year and to plan for the next year ahead. Industries and companies understand all these and that is why they are practising it.

[wiss19]

You are probably right that there are a lot of business owners, especially small ones, who don't always keep a record of their finances, and they just keep spending from the money that comes in from their business which is the reason why they can't keep up with the bills, rents, etc. at the end of the month. It is a very big mistake, even if you don't keep records, it is never a good thing to take and spend money from the money that comes in through the business.

Small business owners, like those vendors who sell things on the road or run small shops, even they should keep a record but even if they don't, they should at least don't take out any money from the daily earnings so that they can at least keep a count of the daily revenue at the end of the day.

[D ltr]

having business financial records is very important because we can see how much profit we get per day, week, month and yearly. This applies to all types of businesses, I think, whether it's big or small,
this is often taken for granted, but this is what can make a small business big in the future

[GeorgeJohn]

Do you know one thing that affect people in their localities, it's due to lack of understanding and lack of saves, some business crash today due to lacks of managerial functions, if you don't have record or personal determination towards saves in business, theirs no tendency that you can renew whatever that's obtainable in your business, A business needs to allocate a specific amount that will be going for refill of business items or goods before it can be standard.

[dothebeats]

This should be the norm. If you don't do this then you're bound to lose your business and may even get legal trouble as well. Businesses are expected to keep track of their profits and expenses. From an operating standpoint, it helps one to check whether they need to make adjustments on something in order to give another thing the headroom to work flawlessly. It is a tedious task, that's why you hire experts to do it for you. Though once you have it all sorted, expect that you'll also have less problems in finance and all that kind of stuff.

[Yatsan]

Tracking or monitoring the cashflow in a business should be a must to all business owners out there. It would also promote discipline and will help you make costing, more efficient. The usual problem with businesses are not being able to track the amount of profit and expenses which results to lack of sustanability for the business in general. Money runs a business, give a valid reason why being organized about it should be disregarded. If you would be able to determine losses, gains, expenses, and other billings, it would also allow you to plan and analyze what have gone wrong and give you enough time to fix the mistakes occured for that particular week or month.

[n0ne]

Tracking or monitoring the cashflow in a business should be a must to all business owners out there. It would also promote discipline and will help you make costing, more efficient. The usual problem with businesses are not being able to track the amount of profit and expenses which results to lack of sustanability for the business in general. Money runs a business, give a valid reason why being organized about it should be disregarded. If you would be able to determine losses, gains, expenses, and other billings, it would also allow you to plan and analyze what have gone wrong and give you enough time to fix the mistakes occured for that particular week or month.

Financial record is a must in our personal family life as well as for business. When it comes to family when the income increases automatically the expense too goes high. This shouldn't happen and this is possible through maintaining financial record. At times we'll have additional expenses and the months saving gets decreased. Through the financial record it can be easily identified and the spending can be limited on the next month.

With business financial record helps in maintaining the stocks in a perfect way. Through this we can order for raw material or necessary things at the right time. Important thing financial record, it is much useful during the year's audit for tax submission.

[Jody.Drummer]

having business financial records is very important because we can see how much profit we get per day, week, month and yearly. This applies to all types of businesses, I think, whether it's big or small,
this is often taken for granted, but this is what can make a small business big in the future

Of course financial records are things that must be very concerned, they will determine the fate of the business that we run. If we do it wrong then what is at stake is our own efforts. Financial records must be done every day and record the slightest transaction made in our business. Many entrepreneurs fail because they fail to do so, it looks simple, but the impact will be huge for our business. Precisely things that seem easy this will be difficult if we are not good at managing it. We can follow the example of big companies, they are successful because they are very good at doing this.

[Silberman]

having business financial records is very important because we can see how much profit we get per day, week, month and yearly. This applies to all types of businesses, I think, whether it's big or small,
this is often taken for granted, but this is what can make a small business big in the future

Of course financial records are things that must be very concerned, they will determine the fate of the business that we run. If we do it wrong then what is at stake is our own efforts. Financial records must be done every day and record the slightest transaction made in our business. Many entrepreneurs fail because they fail to do so, it looks simple, but the impact will be huge for our business. Precisely things that seem easy this will be difficult if we are not good at managing it. We can follow the example of big companies, they are successful because they are very good at doing this.

What happens is that keeping financial records may seem like a boring and unnecessary thing to do to most people, and yet something as simple as this is necessary to keep a healthy business, otherwise it would be impossible for the business owner to tell if they are spending their money as they should or if they are overpaying for a particular product or service, and the differences in price when it comes to products and services can be massive depending on the provider they have decided to use, to the point this single aspect can affect the long term viability of any business.

[speedy963]

having business financial records is very important because we can see how much profit we get per day, week, month and yearly. This applies to all types of businesses, I think, whether it's big or small,
this is often taken for granted, but this is what can make a small business big in the future

Of course financial records are things that must be very concerned, they will determine the fate of the business that we run. If we do it wrong then what is at stake is our own efforts. Financial records must be done every day and record the slightest transaction made in our business. Many entrepreneurs fail because they fail to do so, it looks simple, but the impact will be huge for our business. Precisely things that seem easy this will be difficult if we are not good at managing it. We can follow the example of big companies, they are successful because they are very good at doing this.

What happens is that keeping financial records may seem like a boring and unnecessary thing to do to most people, and yet something as simple as this is necessary to keep a healthy business, otherwise it would be impossible for the business owner to tell if they are spending their money as they should or if they are overpaying for a particular product or service, and the differences in price when it comes to products and services can be massive depending on the provider they have decided to use, to the point this single aspect can affect the long term viability of any business.

Big profit or not from a business is still considered profit. Keeping record to keep track about the expenses and earning is maybe too much for other people, even I would say it is an annoying task to deal with, but without it sometimes you lost track of all the past expenditures and earnings if you have so much in mind or perhaps you are just too busy with your day to day life. It may be nonsense for me or even some other business owners but believe me when I say that time will come when you will needing those records.

[Jody.Drummer]

having business financial records is very important because we can see how much profit we get per day, week, month and yearly. This applies to all types of businesses, I think, whether it's big or small,
this is often taken for granted, but this is what can make a small business big in the future

Of course financial records are things that must be very concerned, they will determine the fate of the business that we run. If we do it wrong then what is at stake is our own efforts. Financial records must be done every day and record the slightest transaction made in our business. Many entrepreneurs fail because they fail to do so, it looks simple, but the impact will be huge for our business. Precisely things that seem easy this will be difficult if we are not good at managing it. We can follow the example of big companies, they are successful because they are very good at doing this.

What happens is that keeping financial records may seem like a boring and unnecessary thing to do to most people, and yet something as simple as this is necessary to keep a healthy business, otherwise it would be impossible for the business owner to tell if they are spending their money as they should or if they are overpaying for a particular product or service, and the differences in price when it comes to products and services can be massive depending on the provider they have decided to use, to the point this single aspect can affect the long term viability of any business.

Here's the point. We can't do something big if we still miss small things because when we want to do good business, we have to start everything neatly even if it's the smallest thing, things like that shouldn't be missed because it could be from the smallest thing. this is what will be the big difference between doing it or not.
At least with records like this we will know the data that we can use as benchmarks to make our business even better.

[Xcode7]

I think financial records are the key to the success of a business. I can't imagine running a business without keeping financial records. How do we do monthly and yearly analysis. because by doing annual and monthly analysis we know how our business is developing, whether it is healthy or not, that way we can make choices about the future of our business.

[fadhilz123]

I think financial records are the key to the success of a business. I can't imagine running a business without keeping financial records. How do we do monthly and yearly analysis. because by doing annual and monthly analysis we know how our business is developing, whether it is healthy or not, that way we can make choices about the future of our business.

Financial records in doing business and in running a business are very basic things and can also be used as a basic key as you said. But apart from all that, everyone who is already running their business must have stronger relationships in order to improve the future of their business for the better and that is also another point that is just as important as the point you said. So apply some important points that can really help business progress so that the time that has been used to run the business is not wasted.

[JoyMarsha]

for someone to keep their business from suffering losses. A person must constantly keep a record of their financial dealings, regardless of the type of business they are engaged in.

There are lots of people that do this. particularly the small firm businesses like barbers. They do operate under the assumption that since it is a small firm, there is no need to keep track of how much money is spent on what as they are not buying and selling items. forgetting that they will inevitably exceed the budget if records are not kept of how much money comes into their hand and how they spend it.

You did well in informing your barber friend that maintaining financial records in a business is essential, regardless of how little it may be.

[Cookdata]

I have an aunt who is into grocery sales, and basically, there is no way that your family wouldn't interfere, it is a big one and they do have large sales. The challenge she was having back then was that the children would come and take what they needed without paying because of the family title, they do have this entitlement, and the bad side of this is that there will be missing sales or a shortage of money at the end of the month.

She did something incredible about it and mandated that whenever they visit the shop to pick up any item, they should record it even if they don't drop money. This helps her balance her credit and debit at the end of the month, and what she was doing at the end of the day is charging their father for the items they did pick. She believes a business should remain a business, but that doesn't mean she wouldn't support them at home; if it weren't for the records, they would have rekt her business progress.

[virasisog]

Having a financial record is too important for you to track your expences, profit and losses at the same time. It is a way for you to determine whether your marketing strategy is working or if your product is in demand.
Even a small amount of expense should be recorded for you to know the flow of your business o matter how big or small it is so you should know if you are reaching your goal or if you are failing in your business.

[serjent05]

Having records of everything is the best practice in business.  May it be stocks, sales, deliveries, purchases, etc.  Having a financial record enables us to track how well the company is performing.  It can also give us information on which product is performing well and which is not.  Thus we can either trim down or expands the allotment of budget for certain products.  Thus it also helps us to determine the best way to use in marketing and promotions without compromising the company's financial stability.

[CODE200]

I wholly agree with you on the need to have an accurate financial record for a business, irrespective of if it’s a small business or a big one. It really doesn’t matter if you’re just starting up your little business or you’re the owner of a multinational corporation, you just need to have a financial record of your business.

Having an accurate record of your business transactions would, like you stated let you know if you’re running at a loss or you’re making some profits. Also, I think a clear record of your business would also improve your chances of being granted a loan from the bank for your business.

Financial record is somehow a must specially if you are into business. This will serves as your tracker for your journey on your business and to all profit and loses that you may encounter. By this also you can easily distinguish where/what you need to improve. You can easily monitor where your money goes. Just when you enter in one company you can notice that even it was 10-20 years ago they still have the record it may be physical or digital record because its useful to improve their finances in the future.