Always Have a financial record in whatever business you own

[irhact]

There are many more benefits of keeping financial records and I know it's not the most exciting part of your business but it is essential to your business. It doesn't matter how small your business is, be it, laundry, hair salon, boutique, online store, etc, always keep financial records.

You have done very well with this topic of yours, Keeping financial records is a very important step in building businesses, any business that doesn't keep a financial record won't know the way their business is going if it's been profitable or you're losing in the business. Keeping a financial record will help you stay disciplined. Reason why most business fail is because the owners aren't serious with the business.

Most business owners don't know how to run business because if they did then they'll know keeping financial record is very beneficial to a business so why then won't they won't to it instead just thinking the business is successful while it isn't. Business owners invest their salary or other sources of income into their business and think it's the business sustaining itself.

[Alpha Marine]

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.

Let me also use this opportunity to say that small businesses should always follow the "entity concept" in business which states that a business is different from the owner of the business. So whatever relationship you as a person has with someone else, that relationship does not include your business. She may be your aunt but the business is not your aunt.
Your aunt was smart with the idea she came up with because if she hadn't done that her business might be suffering and it would have been worst if she doesn't keep records because she would have no idea of what is going on.

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.

In a lot of countries, it's not even taught in college. Only students that are in the social science and Management science department have the advantage of learning this and even there it's not handled like an important topic or course. A lot of people who know these things didn't learn this from school.

[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.

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.

True, which is why when I hear someone saying they have no money and I see them buying expensive coffee, video games they do not even play, useless apps and all kind of stuff they do not need I simply ignore them as I know the are not serious about their goals, because if they were they would sit down and analyze their expenses and suddenly realize they are throwing an immense amount of money away each month and immediately change their ways.

[Gallar]

in doing business should be the obligation of every company owner that it is necessary to write down all expenses and all income carefully and precisely, there should not be the slightest mistake. because in opening a business, one of the keys to success that should not be missed is always keeping books/recording capital, income, expenses, materials, and salaries of all employees (if you already have one).

and all of these records are very important, no point should be missed, because if the data/recording is inaccurate, it will cause confusion.
Therefore, it is mandatory for entrepreneurs who are just starting out to get used to always keeping records/recording all data. so that when the business is big enough there is no word to forget or underestimate this bookkeeping.

and for recording there are several ways that can be done, namely in a classic way and in a modern way, if you use a classic way that is using a book, and for a modern way you can use a laptop or computer device (PC).

[mvdheuvel1983]

What is not measured cannot be improved(Peter Drucker)
Most small and medium enterprises always overlook the aspect of a good financial record keeping. Some feel they are in control. There is no need.
While some others may have just learned it from their parents who ran or managed similar business in the past.
There are too many pros to having a financial record in this age that it cannot be stress enough. And the internet age has made it all the easier because there are several bookkeeping apps that will save you stress and even improve your business inflow and outflow of cash.

[xSkylarx]

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.

Small details are also big details. Imagine if you missed to record $1 expenses in your business, which you continue to spend in a month so it would be $31 and it is huge already as it is profit, and if you analyze and check your income business then you fall short. Even cents should be recorded, no matter how small, so that you can see if business is going well or not. Even though it's kind of tiring to list it down, for sure you'll benefit from it in the long run.

[GeorgeJohn]

I think financial records are really needed for entrepreneurs, even non-entrepreneurs are really needed. Because we can easily analyze if there are obstacles or problems in the business world that we live in, so we can easily track down the mistakes we make or control unnecessary expenses.
That way we are more efficient in unnecessary expenses in the future.

Sometimes what we need is curiosity in any business,  because if we happen to be conscious of our business, its necessary that we most have record to enable us to be accountable both our expenses and profits achieve, because its obvious that theirs no mini company or large companies that doesn't have bookkeeping in it business,  because its through your records that will indicate if you are making profits or not. A low business owners makes records which tells the strength of the business  or not. So any business deserves records so that you can be accountable to expenses made weekly and monthly.

[Silberman]

Small details are also big details. Imagine if you missed to record $1 expenses in your business, which you continue to spend in a month so it would be $31 and it is huge already as it is profit, and if you analyze and check your income business then you fall short. Even cents should be recorded, no matter how small, so that you can see if business is going well or not. Even though it's kind of tiring to list it down, for sure you'll benefit from it in the long run.

This level of detail is tiresome but it must be done if we want to have a successful business, and this is something which can be used when it comes to your household expenses as well, for example many people just buy the same brand of products over and over again, however if you really sit down and compare prices you can find a product which does the very same thing for a lower price and save a lot of money, money which you can later use on something else you may need.

[Kakmakr]

I see, you are saying that you are too shy and introverted to speak to large groups... so I will recommend that you have smaller interactions with smaller groups..until you get enough courage to speak to larger groups.

Yes, this is a very important aspect of all businesses.... and I speak from experience. One of my family members ran a small car wash for extra income during their retirement. There were little paper work done, because it was done more as a hobby to keep them busy, but it turned bad very quickly.

So, when they started keeping record of the income and expenses.. they realized that after expenses... they actually made very little profit.... and some rainy months, they had to pay from their own pension money to keep paying the payroll. 

[iamsange]

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.

You stated this very precisely, but on this occasion I also want to add a little to the explanation you said so that it is even more complete, because according to a source from payfazz.com that bookkeeping is something that the company cannot forget. or any employer. Because bookkeeping or financial records are intended to organize and store financial documents such as financial reports.

In the financial records usually several things will be listed such as cash flow, number of sales, profit and loss and other things. The existence of these records can later be used as a reference whether your business is healthy, different strategies need to be carried out to determine profits and losses. In addition, there are also other reasons why financial records in business are important. Such as the following:

• To know income and expenses
• To regulate the use of money or capital
• As one of the decision-making factors
• Simplify when reporting taxes
• For consideration of potential investors

[Sir Legend]

If we want to be successful in managing finances then we must have a financial record, many people are in business but do not have a financial record so that when difficulties occur they are powerless and bankrupt, with a financial record we determine the best steps and strategies when facing financial difficulties.

[zaki12]

The way you educate your friends is correct, that's how it should be. Having good financial reports is very important for all levels of business, not only for large businesses with complex financial systems. However, the barber must also have good financial reports to help determine the financial condition of the business, and maintain the financial balance of the business.

Because by keeping financial records, we can record and manage all business financial transactions in a structured and well-documented manner. so that the existence of financial records can also help business people to find out their business cash flow, maintain a balance between income and expenses, and find out the profit or loss of their business.

[Mauser]

I have always wanted to organize something like a free seminar and educate the owners of small businesses in my community about this but I'm a very introverted and shy person so I don't know how to go about it, please I will appreciate ideas. 

That's a great idea, I think there is a lot of demand for such seminars among small business owners. In my country it's mandatory that all types of businesses need to keep at least a basic level of financial records. But many companies are struggling with it and when there is an audit happening there is a lot of panic. During university I worked part time in a tax office and saw first hand in what conditions these documents where. There were a lot stains on the paper and pages missing, which was a big problem because the government would always make unrealistic estimates. If you are struggling with speaking in front of strangers you could think about only making online seminars, then you would be sitting alone in your room and only have to engage via video with your clients. One problem is that many business owners don't pay much attention to the subject, it only comes to mind when there is an audit around the corner.

[Alpha Marine]

That's a great idea, I think there is a lot of demand for such seminars among small business owners. In my country it's mandatory that all types of businesses need to keep at least a basic level of financial records. But many companies are struggling with it and when there is an audit happening there is a lot of panic. During university I worked part time in a tax office and saw first hand in what conditions these documents where. There were a lot stains on the paper and pages missing, which was a big problem because the government would always make unrealistic estimates. If you are struggling with speaking in front of strangers you could think about only making online seminars, then you would be sitting alone in your room and only have to engage via video with your clients. One problem is that many business owners don't pay much attention to the subject, it only comes to mind when there is an audit around the corner.

I think making it mandatory for businesses to have a certain level of knowledge in financial records. That would help businesses take their financial record more seriously. People find it boring and to an extent I can't blame them because it's pretty uninteresting but it's very necessary.

A user gave me a similar tip. I have been editing videos and I have already started taking steps in making the semina happen.

[Silberman]

That's a great idea, I think there is a lot of demand for such seminars among small business owners. In my country it's mandatory that all types of businesses need to keep at least a basic level of financial records. But many companies are struggling with it and when there is an audit happening there is a lot of panic. During university I worked part time in a tax office and saw first hand in what conditions these documents where. There were a lot stains on the paper and pages missing, which was a big problem because the government would always make unrealistic estimates. If you are struggling with speaking in front of strangers you could think about only making online seminars, then you would be sitting alone in your room and only have to engage via video with your clients. One problem is that many business owners don't pay much attention to the subject, it only comes to mind when there is an audit around the corner.

I think making it mandatory for businesses to have a certain level of knowledge in financial records. That would help businesses take their financial record more seriously. People find it boring and to an extent I can't blame them because it's pretty uninteresting but it's very necessary.

A user gave me a similar tip. I have been editing videos and I have already started taking steps in making the semina happen.

I think this is mandatory already, however since it is impossible for people to learn everything there is to know then they hire an accountant to do this job for them, however accountants can charge high wages, wages which small businesses cannot afford and if the business owner tries to keep the financial records by themselves then most likely will fail, otherwise we will not have any need for a profession like accountants which specialize on this field.

[Joshapat]

If we want to know the condition of whether the business we are managing is profitable or losing, then the most important thing is to always keep financial records, many people are complacent and run a business so modestly that when they see the facts they are already losing money, records are important to make the business we manage can profit.

[Inwestour]

I spent most of my free time with him at his shop so I know the number of customers that walk in for a haircut daily and I know what his rates are, so by calculations, he should be making enough money even after rent and other expenses required to run the shop. So one day when he complains about rent I asked him how much he makes in a week and he couldn't tell me an estimated number.

What was the problem with this barber?
If you say that he has a good flow of customers and sufficient rates to make a profit, even after paying all taxes, then why did he have no money left, what was the problem?

Some people lead such a lifestyle that only keeping records will not help them, for this you need to learn how to plan a budget. Although accounting is very important in business, and after that he will see how much he earns, but if he does not change his lifestyle, does not reduce his spending, then he still will not have enough money for rent, because his habits are costly.

He will need to improve financial planning, and after he sees where and how much he spends, he will be able to understand how much he needs for a comfortable life, and in relation to this amount he will be able to plan his budget.

[mm2543363580]

I spent most of my free time with him at his shop so I know the number of customers that walk in for a haircut daily and I know what his rates are, so by calculations, he should be making enough money even after rent and other expenses required to run the shop. So one day when he complains about rent I asked him how much he makes in a week and he couldn't tell me an estimated number.

What was the problem with this barber?
If you say that he has a good flow of customers and sufficient rates to make a profit, even after paying all taxes, then why did he have no money left, what was the problem?

Some people lead such a lifestyle that only keeping records will not help them, for this you need to learn how to plan a budget. Although accounting is very important in business, and after that he will see how much he earns, but if he does not change his lifestyle, does not reduce his spending, then he still will not have enough money for rent, because his habits are costly.

He will need to improve financial planning, and after he sees where and how much he spends, he will be able to understand how much he needs for a comfortable life, and in relation to this amount he will be able to plan his budget.

This is the basics of any business to keep records either manually or digitally on your devices,  how come someone running a business without record keeping . I myself know alot of businessman and they have proper records of their earnings and spendings . They know about their profits and losses on monthly basic , they know their incomes .
So this is strange to hear that a person running a shop is not keeping any record.

[concept2]

I had this barber friend in a neighboring hood I lived a few years ago who is a very good barber and has his own barbershop. He does home service from time to time too. He’s really good so he has a lot of customers but at the end of the month he always struggles to pay the rent of his shop. I spent most of my free time with him at his shop so I know the number of customers that walk in for a haircut daily and I know what his rates are, so by calculations, he should be making enough money even after rent and other expenses required to run the shop. So one day when he complains about rent I asked him how much he makes in a week and he couldn't tell me an estimated number.
Long story short, I educated him on how to keep financial records and record every single penny that comes in and goes out of his business. I also made him understand how this can help him cut losses and make more profit.

The point of this whole story is that I have encountered a lot of people who have small businesses and don't even bother about keeping records in their businesses and this single reason could be a hindrance to growing your business.
No matter the kind of business you do, you should be able to know if you are making a profit or running at a loss. After analyzing a distant relative business I found out that she was taking money from another business to sustain another business. In the long run, both businesses will go under. Not only does a good financial record help minimize losses but it also helps lessen the burden of your taxes.

You don't have to be a big corporation before you keep a record of your daily financial transactions. And no, it doesn't have to be a perfect or standard financial record or statement. It could be done in any way you and the next person will understand. It should just include all the money coming into your business and all the money going out of the business in whatever form. At the end of the day, you should be able to know how much you made in total, how much you have at hand at the moment, how much went to your bank account, how much is in the hands of debtors, how much you owe for bills and to your customers or any other person or entity.

An accurate financial record helps you;
Know the progress of your business: It's through the financial record that you know if your little business is safe or about to go under. If your business is safe your records will also let you know how safe you are. When your records have enlightened you on the future of your business then you can now make a decision based on what the financial records show.
Identify income sources and reduce unnecessary expenses: When you look at your financial records at the end of the month and you see the business not heading in the desired direction, then you do something about it, You can either start cutting down expenses that are not necessary or identify the part of your business that generate the most income and put more focus on it.
Allows you to attain complete regulatory compliance: I stated earlier that an accurate financial record helps with your taxes. Of course, you have to pay taxes, but you can't do that accurately if you don't keep an accurate financial record and that might put you and your business in trouble with the regulatory bodies in the future. Not only does our financial record help figure out your taxes but it also supports the items written on your tax returns.

There are many more benefits of keeping financial records and I know it's not the most exciting part of your business but it is essential to your business. It doesn't matter how small your business is, be it, laundry, hair salon, boutique, online store, etc, always keep financial records.

I have always wanted to organize something like a free seminar and educate the owners of small businesses in my community about this but I'm a very introverted and shy person so I don't know how to go about it, please I will appreciate ideas. 

Listen up peeps, if you own a biz no matter how small, it's hella important to keep a financial record. It ain't just for the big shots, ya hear? You gotta keep tabs on all yo transactions to see if you're making moolah or not, know where yo cash flow's comin' from, cut down on expenses, and make sure you're following all the legal mumbo-jumbo. The benefits are huge, and trust me, it can make or break your biz. And yo, it ain't gotta be all fancy and technical-like, just make sure you and anyone else can understand it.

So why's it so dang important? Well, it helps you figure out if you're making bank or losing it, ya dig? And you don't wanna take money from one biz to prop up another, that's just asking for trouble. Having a solid financial record will help you see how much cash you got on hand, in the bank, and who owes you money. Plus, you'll know what bills you gotta pay and to who.

If you want your biz to blow up like a balloon at a birthday party, then you gotta keep track of your cash flow. When the month comes to an end and you peep your finances, if you see your biz ain't heading in the right direction, then you can start slashing expenses left and right or figure out which part of your hustle is bringing in the most cheddar and put your hustle in that direction. By doing this, you'll have the 411 to make boss moves that will help your biz thrive.

[Twentyonepaylots]

I spent most of my free time with him at his shop so I know the number of customers that walk in for a haircut daily and I know what his rates are, so by calculations, he should be making enough money even after rent and other expenses required to run the shop. So one day when he complains about rent I asked him how much he makes in a week and he couldn't tell me an estimated number.

What was the problem with this barber?
If you say that he has a good flow of customers and sufficient rates to make a profit, even after paying all taxes, then why did he have no money left, what was the problem?

Some people lead such a lifestyle that only keeping records will not help them, for this you need to learn how to plan a budget. Although accounting is very important in business, and after that he will see how much he earns, but if he does not change his lifestyle, does not reduce his spending, then he still will not have enough money for rent, because his habits are costly.

He will need to improve financial planning, and after he sees where and how much he spends, he will be able to understand how much he needs for a comfortable life, and in relation to this amount he will be able to plan his budget.

It all boils down to having financial planning since it is important to track all your expenses and income so you can further assess the performance of your business. Having keeping records is one way to go since it could give you an image of the business' financial flows. I think in the situation of the barber, having personal financial planning is important since it could be a problem of how he personally manage his own money. It is important to any business and individuals to track their expenses and have financial planning so that they can really see what to do and also to view their standing in terms of financial secureness.