Always Have a financial record in whatever business you own

[Gozie51]

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 things you pointed out are not peculiar to your friend alone in such small scale businesses. Most owners of such businesses don't see it as something that they can turn into a big business venture but they only see it as an end in itself, like a means to only feed, go with the girls and to sustain just immediate hunger and funfair.

They don't see it as a business that they can bestow to heirs and for that one of the challenges to it is they don't believe they have a future in the business. They don't see it as SME and they don't think about the future but to consider it as a time to hold on to pending when bigger employment job will come then they will fold it up and abandon it thereby killing the circle of SME growth that are suppose to be a good engineering to the economy.

Such barbing saloon business is suppose to be handled properly because they are part of small businesses and the government is interested in them. A more wiser business person on it can write proposals to government and may get access to loan for expansion and advertise the business online then you see more customers.

The buttom line is your friend is not seeing what he has found his hand to be doing as a business, he doesn't consider a future with it but looking for a white collar job.

[xSkylarx]

the government is pushing everyone into digitalization because the tax department realizes that there are some stores that really don't have a track record of their businesses, as well as other businesses that are declaring only small value, which is why they only pay small taxes.

The tax issue is going to be a big issue for government of  third world countries because a lot of these businesses are not documented. A business can operate for years and the government won't even know a business like that exists because it was not registered anywhere. There may be different local forms of payment but these monies don't go into the coffer of the government , they just end up in the pockets of those that receive the payment.
This is due to a lack of a working system, so things are not run accordingly.
There is also the fact that the people don't trust the government, so they find it hard to pay their taxes.  The government provides nothing for them.Not roads, electricity, water, security, so why should they willingly pay their taxes when they provide even the things the government should provide for them by themselves

Though right now the government is very strict and unlike before, you can have a business without a permit as the government doesn't really check on it, right now it is very difficult as they are now checking all of the establishments 1 by 1 to know if they have permits, which is why there is a constant increase in the number of people who are paying taxes. Also, right now the government is going into digitalization as it is easily manipulated if you are just writing your annual income, which you will write small on it so that you'll pay less tax.

[MiF]

Yeah we need to always have a record to know if we got profit from our business or not, we need to record everything not just financial record but every little thing record is very important in doing business we can look at the record and make a future plan to earn or to make  the business more good.

[smile1218]

It is very important to keep the financial record in whatever business you own. Financial records can provide us the informations for tax reporting. Those financial records are needed in complying to the Bureau of Internal Revenue, here in our country those financial records should be kept for 5-10 years for future audit of the Bureau if they had requested the company to show it off for questioning and clarifications versus the declared taxes submitted to them. The financial record could help us also track the income, expenses and other financial activities of the company.

[YinShuiSiYuan]

It is very important to keep the financial record in whatever business you own. Financial records can provide us the informations for tax reporting. Those financial records are needed in complying to the Bureau of Internal Revenue, here in our country those financial records should be kept for 5-10 years for future audit of the Bureau if they had requested the company to show it off for questioning and clarifications versus the declared taxes submitted to them. The financial record could help us also track the income, expenses and other financial activities of the company.

Keeping financial records is important for normal life too as it keeps check on your earnings and spending and you know where you stand by the end of month.
In business obviously its compulsory to have financial records to calculate profits and losses and to adjust income statements.

[19Nov16]

To make a business profitable and growing, of course, the important thing that a business owner has to do is to know the financial flow, without knowing the financial flow, we don't know whether we are making a profit or a loss, many business people don't care about financial records so what happens is the business flows and it doesn't can be controlled.

[Cryptock]

the government is pushing everyone into digitalization because the tax department realizes that there are some stores that really don't have a track record of their businesses, as well as other businesses that are declaring only small value, which is why they only pay small taxes.

The tax issue is going to be a big issue for government of  third world countries because a lot of these businesses are not documented. A business can operate for years and the government won't even know a business like that exists because it was not registered anywhere. There may be different local forms of payment but these monies don't go into the coffer of the government , they just end up in the pockets of those that receive the payment.
This is due to a lack of a working system, so things are not run accordingly.
There is also the fact that the people don't trust the government, so they find it hard to pay their taxes.  The government provides nothing for them.Not roads, electricity, water, security, so why should they willingly pay their taxes when they provide even the things the government should provide for them by themselves

That is correct - we give away to much money in tax. One should try to find different ways to earn ad much as we could and keep the financial record hand so to keep track of it. one of my friends says that in their religion they must keep written records and that is their religion

[og kush420]

To make a business profitable and growing, of course, the important thing that a business owner has to do is to know the financial flow, without knowing the financial flow, we don't know whether we are making a profit or a loss, many business people don't care about financial records so what happens is the business flows and it doesn't can be controlled.

That is so true. Keep thr records in written and see the magic set the goals and try to acheive the goals as soon as possible. Make it your motto to set the goal and achieve it for this keep the financial in written form.

[sulendra12]

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.

I don't even know why people doesn't even track their record to see if the business goes well or not. What's the purpose of managing a business if they don't even want to manage and keep track of everything, because the stake is really high and it would make you bankrupt if you do nothing about it. Financial records are important so you can decide better actions.

Sure managing your business is difficult and it's not everyone's game but the freedom you can get while doing it is really worth and with the tasks you have to do then it's always a must to prepare everything.

[og kush420]

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.

Analyzing financial records allows businesses to analyze past performance and project future growth, making informed decisions about investments, expansions, and other strategic initiatives. By tracking income and expenses over time, individuals and businesses can create and stick to budgets.

those who keep their records update are more vigilent than those who are lazy keeping the records track becuase you can forget even after an hour where you spent the money

[MFahad]

Keeping a financial record is good because it will help you determine if the business is successful or not. You doing your income and expenditure daily will give you an insight into how the monthly one will look like and also teach you some practical things you need to do. For instance, cutting down your expenses and saving more.

records of everything should be kept safe because in life if you continue your journey without any planning or records so it will become difficult for you one day to manage your expenses and to make your financial status easier. By keeping record it will be easy for you to minimizes your expenses and to save some amount of money for future use and I think those businessman will be more successful who keep records of each and everything as it provides a smooth way of business.

[southerngentuk]

Keeping financial records is very important in business. It can make it easy for businesses to check for accuracy in financial assessments, ensuring accuracy and eliminating the risk of errors or miscalculations. Know your business's costs and revenues so you can identify unnecessary expenses, reduce waste, and make adjustments to optimize profits. So try to promote understanding of specific financial records needs and concerns. Can provide instruction on basic record-keeping methods, such as simple spreadsheets, notebooks, or mobile apps, that can help entrepreneurs track income and expenses easily.

[og kush420]

If we think that we will continue to grow our business then what we have to do is record a balance sheet, of course we don't have to pay employees who specifically monitor financial flows, but we can do this ourselves with excel or an application on android that we can download for free.

Keeping financial records in written form is a great way to keep the records hand and also if the financial deal is between two people. It is great to deal with written records. Otherwise most of the time the deal end in disaster

[AicecreaME]

Financial record obviously when having a business is a must, so you can track )(1)if the inventory of your sales per day is correct, (2)to track your profits weekly or monthly, (3) to know what to adjust in order to meet your daily expenses in your business.

Actually there's a lot of advantages when you record all your financial things in your business, but for me that's the main reasons why any businessmen or businesswomen do it.

[Cryptock]

Financial record obviously when having a business is a must, so you can track )(1)if the inventory of your sales per day is correct, (2)to track your profits weekly or monthly, (3) to know what to adjust in order to meet your daily expenses in your business.

Actually there's a lot of advantages when you record all your financial things in your business, but for me that's the main reasons why any businessmen or businesswomen do it.

it is a great thing to keep the financial record handy.
once you are used to it, you will be happy and will thank yourself for being able to make this your habit. One of my friends even make a stamp paper of any deal which he does with contractor

[$crypto$]

Keeping a financial record is good because it will help you determine if the business is successful or not. You doing your income and expenditure daily will give you an insight into how the monthly one will look like and also teach you some practical things you need to do. For instance, cutting down your expenses and saving more.

records of everything should be kept safe because in life if you continue your journey without any planning or records so it will become difficult for you one day to manage your expenses and to make your financial status easier. By keeping record it will be easy for you to minimizes your expenses and to save some amount of money for future use and I think those businessman will be more successful who keep records of each and everything as it provides a smooth way of business.

Just look at large companies, they even have special staff to record their finances, this proves that having financial records is very important in running any business, no matter whether the nominal is small or large, it must always be recorded.

Things like this do seem like trivial things, but when we ignore them, they will have a big impact on the business we run. Financial records are one of the determining factors for our business, because from there we can see the progress of our business every month, week or even every day. That way we can continue to evaluate so that our business becomes bigger and more advanced.

Financial management is important, not only in running a business, but it is also very important in our daily lives, so make it a habit for us to continue doing it from the smallest things, such as in the personal or family sphere.

[umbara ardian]

Each country will have different laws, but there is no denying that they are increasingly trying to tighten regulations and requirements for businesses to have the appropriate licenses and permits. So it affects a lot of businesses, especially small or established businesses. Moreover, the fact that they also strongly increase the application of taxes is also one of the big challenges for these businesses because, with more and more advanced technology, the application of digitalization in taxes for easy management is also important. such as tightening the possibility of tax evasion. That's why the government is profitable when more and more new businesses are born.

[doomloop]

If we think that we will continue to grow our business then what we have to do is record a balance sheet, of course we don't have to pay employees who specifically monitor financial flows, but we can do this ourselves with excel or an application on android that we can download for free.

Keeping financial records in written form is a great way to keep the records hand and also if the financial deal is between two people. It is great to deal with written records. Otherwise most of the time the deal end in disaster

By written do you mean having notebooks or registers for entries and financial stats and records? That is a traditional way of keeping records and isn't recommended anymore, we are living in a digital world and it is more easy and convenient to keep your records online or at least on a computer, I would still recommend keeping them online as it has fewer risks of losing the data.

One should use a cloud service or a drive like Google drive to keep their important files and business records so that if something goes wrong with the computer that they are using at work, their data stays safe and they can easily get it back even on another device.

[Cryptock]

If we think that we will continue to grow our business then what we have to do is record a balance sheet, of course we don't have to pay employees who specifically monitor financial flows, but we can do this ourselves with excel or an application on android that we can download for free.

Keeping financial records in written form is a great way to keep the records hand and also if the financial deal is between two people. It is great to deal with written records. Otherwise most of the time the deal end in disaster

By written do you mean having notebooks or registers for entries and financial stats and records? That is a traditional way of keeping records and isn't recommended anymore, we are living in a digital world and it is more easy and convenient to keep your records online or at least on a computer, I would still recommend keeping them online as it has fewer risks of losing the data.

One should use a cloud service or a drive like Google drive to keep their important files and business records so that if something goes wrong with the computer that they are using at work, their data stays safe and they can easily get it back even on another device.

It is good to keep a track of  your financial record in written form. it is obviois that we are going to forget the expense we are going to make.
Also it is great idea to discuss all the financial records in
consideration.

[Patrol69]

Proprietary business always needs to keep a specific account so that at the end of the month you can understand whether your business has made a profit or a loss. Due to not keeping financial accounts of the business, many times the businessman has to face a lot of trouble with these issues. You understand that your business is making a lot of profit, but seeing that you are making a profit, you did not keep any account in your business, but it will be seen at the end of the month or if you calculate annually, you will see that your business is showing a loss even if you make so much profit every day. Even if the business is one's own, every aspect of this business should be accounted for. Because this daily calculation will help you in yearly calculation.