12/10/2012
THE IMPORTANCE OF RECORD KEEPING.
Why keep records?
"Records are like students report Cards, with it,
you can tell how well you are managing your
organisation.
They can show you your weakness and Strengths"
Keeping accurate and up-to-date records is vital to the success of any business. The business must realise that records kept will be one of the most important management tools it possesses
and, therefore, it should be allocated due importance. Many business owners invest a lot of time and effort into the running of their business and yet fail to realise the importance of maintaining
good documentation. The business owner is looking for the maximum return from their investment and the maintaining of good records is part of that equation.
For the business to achieve its success and profit, it is necessary for the scores to be kept, as it were. Keeping records is really like score keeping - if you went to a football game where no one
kept the score, you would have to ask “what was the point of that whole exercise?” By keeping the score you are able to work out who is winning and whether you are winning at all. Many people do not know the "current score" of their own business because they have failed to realise the importance of keeping good and adequate records.
Any record keeping system should be accurate, reliable, easy to follow, consistent as to the basis used and be very simple. Good record keeping is vital in regards to meeting the financial
commitments of the business and providing information on which decisions for the future of the business can be based. While the business maintains records to monitor and record its normal
business activities, it is also necessary because of obligations under the taxation laws.
How will it help you?
Keeping clear and accurate records will contribute to the success of your business in the followingways:
::Assists you in preparing your financial statements quickly and accurately.
::Provides information to enable the control of cash in the business.
::Provides management information to base business decisions on.
::Contributes promptly to assessing the financial situation of the business at any time.
::Saves a lot of time and effort.
::Keeps a good track of the costs of staff and their performance.
::Measures the business performance against the projections that were originally set down in thebusiness plan.
::Highlights quickly areas where problems could arise and enable remedies to be put in place.
::Fulfils the obligations as to taxation law.
::Assists you in calculating how much tax you have to pay.
::Assists in providing information required by your bankers.
::Helps in detecting thefts within the business itself.
::Provides valuable information and details for the future sale of your business where that is
required.
::Increases the chances of the business operating and achieving success.
Employing our knowledgebase and programming capabilities (JIL INC), we develop unique database structure for our clients knowing well that different organizations have varying categories of records. The underlying factor of the solution we provide is its reliability. It allows for comprehensive and systematic documentation. Other key feature of our solution is high security features and backing up functionality to prevent loss of information.
What our solution will do for you?
The following check list will give you an idea of some of the things that our solution will be able to reveal as far as your business is concerned:
::The income you are generating now and how much income you can expect to generate in the
future.
::How much you owe for goods or rent or other expenses.
::How much cash you have on hand and how much cash is tied up in other things such as stock.
::How often you turnover your stock.
::Your gross profit and your net profit.
::How your financial situation compares with last year or with your budgets.
::How much cash is owing to you at any time and how long has it been outstanding.
::What are your actual expenses and overheads compared to your projections?
::Which of your products are making a profit and which are running at a loss?
::How your business compares in financial terms, as well as product quality and service supplied etc, with those of your competitors and with the industry in general.
Good records will keep you on your toes and enable you to monitor every situation. It is no use
finding out six months down the track that a particular product has been selling at a loss, or that
your sales are 50% less than what was in your budgets, or that you are owed N50,000.00 more
than expected at any particular time of the year.
After you have adopted a good system for your organisation, make sure you use the system to help you in the business.
Credits: smartsmallbusiness.org
For more information
Contact us:
Tel:08164834723
www.jilincorp.com
email:[email protected]
