Topic: Always Have a financial record in whatever business you own - page 6. (Read 1339 times)
Having a special financial book, a business development planning book, a special notebook for finding new problems in our business and our business development journal is a must-have staple. everything is needed to make it easier for us to observe and evaluate the business that we have. We also have to routinely observe our business. if it is a company that has a certain number of employees then a monthly meeting to evaluate the performance of the company is also required. but if it's a small business then we personally have to routinely observe and evaluate our business performance.
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 have always wanted to organize something like a free seminar and educate the owners of small businesses in my community about this but
Financial records keeping in every business makes the business owner to have an indepth insight if he's moving forward in his business, fluctuating or retrogressional. Financial records of our business we keep today helps us on how to avoid same futuristic financial mistakes when we're faced with one. Financial records of our business can be likened to a compass that guides our business projections.
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I'm a very introverted and shy person so I don't know how to go about it, please I will appreciate ideas.
As an introvert with such brilliance you can make good use technology to share your knowledge to crowd out there without you having to sit face to face with them. You can do an audio recording and share with them, which they can keep listening to time after time. It can make you some cool cash if you're very good at what you intend to do.
As a small business owner, I learned the art of keeping financial records from my mentor. Because of his meticulous book keeping was secure funding for his business expansion from several financial institutions. He has over time been able to gain clarity about the next business decision from just looking at his books. They have been impecable.
This is another good point, good financial records not only help you to take better decisions when it comes to your business, they also allow others to have a very clear vision of your business too and you can obtain loans or investments that you could not get otherwise, and while the owners of some small businesses may think they may not need something like this, who is to say the very reason their business remains small is because they do not keep better records and they are unable to find the opportunities and the money to expand because of it? 
As a small business owner, I learned the art of keeping financial records from my mentor. Because of his meticulous book keeping was secure funding for his business expansion from several financial institutions. He has over time been able to gain clarity about the next business decision from just looking at his books. They have been impecable.
It is very important to keep the records handy - one of my muslims friends said that they are asked in their Holy book to write the financial transactions. So it is very good and safe trick to keep it on record.
As a small business owner, I learned the art of keeping financial records from my mentor. Because of his meticulous book keeping was secure funding for his business expansion from several financial institutions. He has over time been able to gain clarity about the next business decision from just looking at his books. They have been impecable.
This is a great advice to whomsoever is interested in largescale business I think the main aim of involving in any business venture is to gain profit and make interest as well so it is important to record every transactions made imagine being into a business for long and not knowing what you make daily this will not only be a loss to you but might lead to you business downfall people keep record of there activities in other to maintain a perfect trade without loss and this keeps you focus as a business owner because you can understand what comes in and out of your entreprise record keeping does not only help in knowing the business condition but also help in knowing the time and date of every transactions made
If we focus on profits then financial reports are important, we don't know whether the products we are selling are profitable or at a loss if we don't have financial reports, the easiest thing is to use a computer or application so we can easily monitor financial conditions and target profits we will get.
Nah, it is not only about the profit, but also about how the business is running—that is, imean is it doing well or not? Since that is the time you can also monitor if you need to improve or add innovation to your business. This is also the way you have reports in your business, unless you don't want to have a monthly update on your business to see if that month is going well or not. There are a lot of apps on smartphones and PCs to track your business, so it is better to make use of them.
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.
In this case, I wanted to say that for this barber, in addition to keeping financial records, he must also separate personal expenses and the budget of his business.To fix the problem, you need to know its source, what is the reason for the deficit in his budget. But in any case, if he is faced with this problem, it means that he does not have enough income that he receives for a comfortable life, and he will need to think about how to increase income. It is possible to expand his barbershop and hire a few more barbers. From identifying the cause, the problem will not go away by itself, it will be necessary to work on its solution.
If we focus on profits then financial reports are important, we don't know whether the products we are selling are profitable or at a loss if we don't have financial reports, the easiest thing is to use a computer or application so we can easily monitor financial conditions and target profits we will get.
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 ...
... it, please I will appreciate ideas.
... it, please I will appreciate ideas.
This is called money management.
The ability to distribute and spend the money you have and at the same time know exactly how much you earn and from what sources.
I use all this in everyday life, routine, without having a small business. I have a program on my phone where I drive in all my earnings and expenses, and what topic they are related to.
I can find out at any time how much and when I spent on food, credit, entertainment.
At the same time, thanks to the application, I know perfectly well when and where I earned. All this provides excellent data for forecasting expenses. After a little calculation, I always know how much extra money I have.
I strongly advise same apps to everyone. Especially for business.
Having a track record o every activities in your financial economy is very important, this helps in having an adequate planning over time, most businesses a d inventions do archive their data for future reference a d this serve well in this purpose for them to fast track on past events, record keeping is very important to any organizations because they work on their past records to be able to serve them when applicable.
that is true - but I am such a loser not to do it properly I plan everytime that I will do it this time - but i forget and get lazy every time and this brings so much damage to me.
Having a track record o every activities in your financial economy is very important, this helps in having an adequate planning over time, most businesses a d inventions do archive their data for future reference a d this serve well in this purpose for them to fast track on past events, record keeping is very important to any organizations because they work on their past records to be able to serve them when applicable.
Things that are considered small are things that are actually big things starting from that. Even large corporations have special staff to keep track of their finances. We're not kidding about this. I can be sure, try asking people who have been successful with their business. They will definitely answer the same thing that recording every income and expenditure is very important. And try asking people whose business is not running smoothly, they will surely answer that this is one of the reasons their business went bankrupt (maybe not all, but one of them).
Within the scope of business, of course, financial management must be a major concern in addition to maintaining the quality of products or services. Businesses can thrive when the owner has a good strategy for managing income and expenses so that the business runs as it should. OP's story reminds me of one thing, without good and correct financial management, of course business will only go bankrupt sooner or later. The solution is as correct as some people have said, and simply it should be of use to anyone.In the scope of investment is also no different. Financial management is the most important part so that investors generate worth returns with their plans. Limit expenses that are not really needed and don't prioritize desires when financial conditions can't keep up.
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.
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.
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.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.
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.
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.
So this is strange to hear that a person running a shop is not keeping any record.
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.
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.
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.
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