After identifying our offering, finding customers and listening to them to discover better ways to meet their needs, its important to add additional focus to the day to day administration of our business as it grows.
A crucial aspect of business admin is record keeping.
Without administration and accurate financial records we will find it more difficult to know:
- if we are profitable?
- If we have been paid?
- if we have met all our obligations?
- what our expenses are?
Records, especially financial records should be kept daily.
Depending on our personality type we may find it more or less difficult to keep daily records. There are a few strategies we can focus on to improve our success levels:
- focus on "why" - remembering why we are keeping records will help us to focus on the desirable outcomes that will result from this potentially monotonous task.
- reward if necessary - we may need to "bribe ourselves" a bit until the new routine is established.
- simplify and make it easy - the more difficult it is the less likely it is we will do it.
It is extremely important for maintaining the records for businesses. This is because of compliance & Govt, regulations which can ask you to produce the records any time for past few years. Owners or Directors can be in big trouble if this has not been done properly.
Absolutely. And, records should be kept in triplicate, in different locations.
nice
Yes you are right it depends on .nice post
My motto is "if you didn't record doing it, it didn't happen". That mindset keeps me from forgetting to record things more often than not. I don't want to think I'm making 10 steps forward just to take 15 steps back when I have an issue come up.
For a businessman whether big or a small,maintaining record is extremely important. It is necessary for maintaining the balance between profit and loss of business...also helps in producing records before govt. Officials...
Maintaining records also keeps the overall performance of business of the past very well.
If you didn't know, one point we are enjoying Steemit Is because it keeps our records and every time we can resite our old writing.
Actually records have to be taken as a must.
They are very important because many people, governments, organisations and projects.
Want accountability of money given to their workers.
And without acoutatiblity one can the sacked from job, if you can bear witness
As you said records help one discover the performance of their businesses whether it's profit Making or in loses.
Book keeping is itself a part of accountancy. All the records must be compliant with all statutory requiremnt to make the business legal work...otherwise, without any record...all the transaction will b ilegal...as we do not have any supporting to go with P&L or the Balance Sheet.
Great post
Thanks for highlighting this. I'd say one of the two biggest reasons businesses fail is that they don't keep adequate data to be able to know what's producing the best returns and what should be eliminated. If you have that feedback (and use it) you can keep refining. Then you just need enough time/money to do that until you're successful. But if you don't use feedback from the data you're already getting from the market, you flailing around blindly until you run out of time/money.
Very good information by @sme