Always Have a financial record in whatever business you own - page 7.

Alpha Marine

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Quote from: Mauser on April 09, 2023, 07:21:40 AM

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.

Mauser

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Quote from: Alpha Marine on March 22, 2023, 04:02:39 PM

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.

zaki12

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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.

Sir Legend

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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.

iamsange

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Quote from: CODE200 on March 30, 2023, 07:26:46 PM

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

Kakmakr

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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. Tongue

Silberman

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Quote from: xSkylarx on April 02, 2023, 02:40:14 AM

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.

GeorgeJohn

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Quote from: Fakhrulenclix on March 23, 2023, 03:49:21 AM

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.

xSkylarx

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Quote from: Jody.Drummer on March 30, 2023, 03:40:34 AM

Quote from: Silberman on March 30, 2023, 12:40:47 AM

Quote from: Jody.Drummer on March 29, 2023, 02:16:55 PM

Quote from: D ltr on March 26, 2023, 05:53:56 PM

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.

mvdheuvel1983

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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.

Gallar

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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).

Silberman

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Quote from: Jody.Drummer on March 30, 2023, 03:40:34 AM

Quote from: Silberman on March 30, 2023, 12:40:47 AM

Quote from: Jody.Drummer on March 29, 2023, 02:16:55 PM

Quote from: D ltr on March 26, 2023, 05:53:56 PM

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.

Alpha Marine

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Quote from: Cookdata on March 30, 2023, 05:52:13 PM

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.

Quote from: Silberman on March 26, 2023, 03:27:44 PM

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.

irhact

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Quote from: Alpha Marine on March 22, 2023, 04:02:39 PM

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.

CODE200

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Quote from: Iroh on March 25, 2023, 07:59:53 PM

I wholly agree with you on the need to have an accurate financial record for a business, irrespective of if it’s a small business or a big one. It really doesn’t matter if you’re just starting up your little business or you’re the owner of a multinational corporation, you just need to have a financial record of your business.

Having an accurate record of your business transactions would, like you stated let you know if you’re running at a loss or you’re making some profits. Also, I think a clear record of your business would also improve your chances of being granted a loan from the bank for your business.

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.

serjent05

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Having records of everything is the best practice in business. May it be stocks, sales, deliveries, purchases, etc. Having a financial record enables us to track how well the company is performing. It can also give us information on which product is performing well and which is not. Thus we can either trim down or expands the allotment of budget for certain products. Thus it also helps us to determine the best way to use in marketing and promotions without compromising the company's financial stability.

virasisog

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Having a financial record is too important for you to track your expences, profit and losses at the same time. It is a way for you to determine whether your marketing strategy is working or if your product is in demand.
Even a small amount of expense should be recorded for you to know the flow of your business o matter how big or small it is so you should know if you are reaching your goal or if you are failing in your business.

Cookdata

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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.

JoyMarsha

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for someone to keep their business from suffering losses. A person must constantly keep a record of their financial dealings, regardless of the type of business they are engaged in.

There are lots of people that do this. particularly the small firm businesses like barbers. They do operate under the assumption that since it is a small firm, there is no need to keep track of how much money is spent on what as they are not buying and selling items. forgetting that they will inevitably exceed the budget if records are not kept of how much money comes into their hand and how they spend it.

You did well in informing your barber friend that maintaining financial records in a business is essential, regardless of how little it may be.

fadhilz123

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Quote from: Xcode7 on March 30, 2023, 02:06:32 PM

I think financial records are the key to the success of a business. I can't imagine running a business without keeping financial records. How do we do monthly and yearly analysis. because by doing annual and monthly analysis we know how our business is developing, whether it is healthy or not, that way we can make choices about the future of our business.

Financial records in doing business and in running a business are very basic things and can also be used as a basic key as you said. But apart from all that, everyone who is already running their business must have stronger relationships in order to improve the future of their business for the better and that is also another point that is just as important as the point you said. So apply some important points that can really help business progress so that the time that has been used to run the business is not wasted.

Topic: Always Have a financial record in whatever business you own - page 7. (Read 1339 times)