5 Reasons Why Record And Information Keeping Is Very Crucial To Small Business Survival
. If you really want to grow from a small business owner to a big business owner, then you better start taking record and information keeping very serious.
Record keeping is the same thing as book keeping. It is just a small part of accounting or financial management in general, but it is a great place to start especially for small business owners who desire sustained growth.
Keeping financial records is all about keeping and maintaining financial books. These financial books are very crucial to both small and big business survival. If you are poised for growth and success, some of the books and records you should be keeping are:
Cash Book
Inventory/Stock book
Assets Record
Profit and Loss accounts
Payroll records
Sales invoice
Cash receipt
Credit book
Credit purchases/Debit book
Cash payment vouchers
Bank transactions
At this juncture, i want to share with you 5 reasons why small business survival is hinged on record and information keeping.
1. Record and information keeping will help you plan ahead. You can call it budgeting, it is all the same. Planning for purchases and other business miscellaneous will become easier with record keeping.
2. It can help you meet deadlines and help you make timely payments of loans, rents, bills, taxes and so on.
3. Cash flow management can never be possible without book keeping. Remember, no business can stand the test of time without effective cash flow management.
4. It can help you evaluate the performance of your business to know if your business is stagnant, depreciating or growing. When you know the performance level of your business, you may restrategize and make certain adjustments on your business.
5. It can help you forecast the future of your business, set projections and goals for the business.
In conclusion, proper record keeping can help you compare your present financial status to previous year records. This will in turn help you analyze your growth rate. If you are growing at a rate of 25% or 100%, it can only be determined by the financial records.
At this stage, i rest my pen. I hope i have been able to pass a message across. Till we meet again, it is bye for now.
5 Reasons Why Record And Information Keeping Is Very Crucial To Small Business Survival
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