Topic: Always Have a financial record in whatever business you own - page 5. (Read 1339 times)

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. 

Having a financial record and on each and everything will let you have control over ones finance. Another thing with the financial record it is possible to find what is wrong with our activity and the flaw can be corrected. Flaws are common, but it needs to be easy identifiable.

Having financial record or our daily usage lets us to limit spending and focus on saving. Not everyone were able to do it, as we need to have basic mathematics. Nowadays different Applications were available to perform these activities with ease.

as op said all sections should have their own details, especially about money, because the flow in and out of our business can be seen from there.
but it looks like if the business is still managed by ourselves and it's still small I think using our own calculations won't be a problem either, because we're the ones doing all the action.

as op said all sections should have their own details, especially about money, because the flow in and out of our business can be seen from there.
but it looks like if the business is still managed by ourselves and it's still small I think using our own calculations won't be a problem either, because we're the ones doing all the action.

This is one of the most basic and most fatal mistakes you could commit to your budding business as a learning entrepreneur, not keeping tabs and checks of your financial records. As what OP have said, that's how you know if over time, your business is bleeding money or it's turning a profit, as well as what product/service the problem/blessing is coming from. Not only will a financial record help you keep track of how your business is growing, it also helps you formulate plans that are in line with what you need at the moment, instead of rushing in and changing things from your business blindly and belligerently. You can never go wrong with keeping records of expenses and profits really. That's going to be your best friend if you're an entrepreneur that recently just started, heck even seasoned entrepreneurs know how important this is.

This does not require applications, elementary reporting in Excel will be enough. Perhaps the OP was mistaken in his judgments and he saw some particular day when the barber had a lot of clients, and on other days or at other times everything is different.

In any case, if at the end of the month he does not have enough money to pay for the rent of the premises, then something is wrong with the business, since the business must provide for his needs. But if there is accounting, then it will be possible to see what the problem is.

Having a financial record and on each and everything will let you have control over ones finance. Another thing with the financial record it is possible to find what is wrong with our activity and the flaw can be corrected. Flaws are common, but it needs to be easy identifiable.

Having financial record or our daily usage lets us to limit spending and focus on saving. Not everyone were able to do it, as we need to have basic mathematics. Nowadays different Applications were available to perform these activities with ease.

Having a financial record and on each and everything will let you have control over ones finance. Another thing with the financial record it is possible to find what is wrong with our activity and the flaw can be corrected. Flaws are common, but it needs to be easy identifiable.

Having financial record or our daily usage lets us to limit spending and focus on saving. Not everyone were able to do it, as we need to have basic mathematics. Nowadays different Applications were available to perform these activities with ease.

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.

Great thread with one of the best advice I've come across in a while, financial record is a crucial part of any business, it's not a matter of whether one wants to do it or not, it is completely mandatory, not doing it is simply the same as not being serious wit the business, and every business that lacks care and attention will suffer and eventually crumble after some time, I am a business man myself and I understand how this works, financial record is the most important part of any business, doesn't matter how large or small the business is, which op stated categorically.

Friend, just get up and do it, locking yourself up all the time damages the brain, so get up, go out there and do what you have to do, I am an introvert myself, but somehow, I've managed to break free from such habit, introvert is an habit the limits a man, the man never get to exercise and show his true potentials, not good at all.
So once again, I say, get up, get out there and do what you have to do.

Great thread with one of the best advice I've come across in a while, financial record is a crucial part of any business, it's not a matter of whether one wants to do it or not, it is completely mandatory, not doing it is simply the same as not being serious wit the business, and every business that lacks care and attention will suffer and eventually crumble after some time, I am a business man myself and I understand how this works, financial record is the most important part of any business, doesn't matter how large or small the business is, which op stated categorically.

Friend, just get up and do it, locking yourself up all the time damages the brain, so get up, go out there and do what you have to do, I am an introvert myself, but somehow, I've managed to break free from such habit, introvert is an habit the limits a man, the man never get to exercise and show his true potentials, not good at all.
So once again, I say, get up, get out there and do what you have to do.

Great thread with one of the best advice I've come across in a while, financial record is a crucial part of any business, it's not a matter of whether one wants to do it or not, it is completely mandatory, not doing it is simply the same as not being serious wit the business, and every business that lacks care and attention will suffer and eventually crumble after some time, I am a business man myself and I understand how this works, financial record is the most important part of any business, doesn't matter how large or small the business is, which op stated categorically.

Friend, just get up and do it, locking yourself up all the time damages the brain, so get up, go out there and do what you have to do, I am an introvert myself, but somehow, I've managed to break free from such habit, introvert is an habit the limits a man, the man never get to exercise and show his true potentials, not good at all.
So once again, I say, get up, get out there and do what you have to do.

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. 

Now it is easier to create a financial report, we choose a lot of applications on Android, although simple but can be easy to monitor financial conditions, to run a business, of course, financial report is the most important thing, financial reports make it easier for us to determine decisions.

Big ups for sharing your experience and schooling your home skillet about how crucial it is to keep your financial records on point. You couldn't be more spot on, dude. No matter how small your biz is, keeping tabs on your dough is key to progress. I gotta give it up to you for having so much passion for educating small biz owners in your hood.

I know you might be feeling a bit anxious since you're more of an introvert, but we can handle this sh*t. We'll start by making some dope flyers with all the info about the seminar and get them out to local businesses. We could also hit up the community center or library and see if they could host it for us. Don't hesitate to hit up your boys and fam for help if they're experienced in event planning. Remember, the more heads we get in here, the more of an impact we can make.

Financial records ain't just some snooze-fest about profits and losses. They're the game-changer that lets you call the shots and take your biz to the next level. When you keep your books on lock, you can see what's poppin' with your cash flow and plan your moves like a pro. And if you wanna tighten up your spending, you'll know what to do. It's like a secret weapon that gives you the power to crush it and achieve your dreams.