The importance of book keeping and record keeping in business Enterprise

The imperative of business records cannot be overemphasized. Every serious entrepreneur must as a matter of fact be able to maintain proper records of his or her business transactions. Proper book keeping is important to sustaining and expanding a business. Without it, the entrepreneur run the risk of hitting cash flow crunches, wasting money, and missing out on opportunities to expand his business. When you keep proper records of your business transactions, you will be properly positioned to carry out proper business evaluation and see how your business is fairing.  

The purpose of book keeping is to help you manage your business and also to enable tax agencies to evaluate your business activity. As long as your book keeping achieves both of these objectives, you are in the right direction. Any financial institution who wants to do business with you must demand for your business records. Your ability to produce it means you are serious about your business.




Business records are important because it prevents theft and keeps things organized. The practice of keeping accurate record of your inventory makes it easier to reorder products and also to enable you see whats selling and those that are not selling. It is important to keep business records because without them you would not know how to break even, or even how much each different product is really making you. Effective and efficient record keeping practices secures your business internal thief and dishonest employees.Additionally, tracking the transfer of money is important so that the wise business owner can know who received money, how much they currently have or if there are any inconsistency that need to be investigated or corrected. Keeping accurate records is highly fundamental for a successfull business to stay organized and profitable.

Many small business owners choose to use business software to keep track of various aspects of their business, while others do it manually. The key to taking full advantage of book keeping software is to determine if it saves you time and frees you up to concentrate on running your business. In many cases it will, but be careful not to fall into the trap of wasting time setting up computer book keeping that could be more efficiently handled on paper. Some book keeping functions are best relegated to an accountant. While it is essential for you to retain a thorough knowledge of your business by reviewing your books frequently, an accountant or book keeper should be hired to handle it so that you can concentrate on expanding your business.

Here are the basic records you should keep:

REVENUE AND EXPENSES

Every business needs a Revenue or Expense Journal or a Ledger to keep track of how much money is going out, where it is going, and what is coming in.

A Revenue and Expense Journal is used by most small businesses and is single-entry accounting - recording receipts and expenditures only.

Double entry accounting involves a ledger and necessitates that each activity be recorded as a debit and a credit on your books. In the past it was thought that all businesses needed to use the more cumbersome method of double-entry, but the single entry system is now used for many small business owners. Single-entry accounting can be kept on paper or computer. Programs that perform single-entry accounting include Quicken by Intuit and Microsoft Money among many others.

A ledger is used to record every transaction twice based on the idea that each transaction has two halves that affect your business. For example, if you sell an item, your books would reflect a decrease in inventory (a credit) and an inflow of payment (debit). If you use double-entry accounting you may want to use a computer program or a book keeper to keep your ledger up to date. If you allow anyone else to keep your books be sure you review them regularly. You may want to use a program to do your double entry, here are some useful ones: M.Y.O.B by Teleware, Peachtree Accounting by Peachtree Software, and Quick books by Intuit.

Consult with your accountant to know which type of record keeping you should choose. Also consult your tax adviser about whether you should use a cash or accrual-based bookkeeping system. 

CASH EXPENDITURE

The cash spent in your business needs to be accounted for if you want to record all business expenses in a given year. This will enable you to calculate how profitable your business has been over the year. There are at least two ways to do this:

• Write yourself reimbursable checks

• Keep a petty cash record.

If you choose to pay yourself back with a check, simply keep track of all cash receipts and total them weekly, biweekly or monthly, depending on your volume of expenses. Keep a log of each category of expense, for tax purposes and write yourself a check for the total. Write cash reimbursable in your check register to differentiate this from taxable income. Alternatively, you can keep a petty cash record by writing a check to petty cash and keeping a log of each expense paid out of petty cash.

INVENTORY RECORDS

Proper inventory records will enable you to keep inventory holdings to a minimum, track buying trends, and prevent pilferage among other things.

If you sell a large number of small-ticket items -- for example, as in a stationary store -- you might want to use a computer system to track inventory or tie your computer system into your sales by having a POS (point of sale) inventory system. If you sell larger ticket items you may be able to do it yourself on paper.The crucial inventory information you need to capture is: date purchased, stock number of item purchased, purchase price, date sold, and sale price.

ACCOUNT RECEIVABLE

If your products or services are paid for at time of delivery, you will not need an accounts receivable tracking system. However, if you provide services or products for which people do not pay you immediately, but pay at a later date, accounts receivable records will help you to keep track of what is owed to you. You can monitor accounts receivable by holding on to a copy of all invoices sent out or by keeping an accounts receivable record. Either way, the information you need to capture includes: invoice date, invoice number, invoice amount, terms, date paid, amount paid, and the name of the entity being billed.

Many software programs are available to help you generate invoices and track hours and expenses incurred for each client. These programs can save hours of time for a business owner and create professional-looking invoices. However, I will still advice that compliment technology with the common sense of maintaining a hard copy. According to Ed Slott, author of "Your Tax Questions Answered", (Plymouth Press) keeping your accounts receivable on computer is sensible if it enables you to collect payment more quickly or get a better handle on where your money comes from. Otherwise a paper system is very effective.”

Software programs that will create invoices or track hours include: Quick Invoice by Intuit software; Time slips and Win Invoice by Good Software; and PerForm Pro Plus from Delrina.

In addition to using a computer to track all your accounts, I will advice that you have a back up and a printed hard copy for the sake of data integrity. If all your transactions are store on your computer had drive, you may lose them in the case of technical malfunction of you hard disk. In the event of hard disk crash, you will lose everything if you do not have a printed hard copy or a back up.

ACCOUNT PAYABLE

Accounts payable are debts owed by your company for goods and services, and or other financial debt like business loans. Keeping track of what you owe and when it is due will enable you to establish good credit and hold onto your money as long as possible.

Some business owners with few accounts payable items use accordion file folders labeled with dates to keep track. Other small firms simply pay bills twice per month and keep all bills in a "To Pay" folder. Larger companies use accounts payable paper records organized by creditor. Regardless of the system you choose, you should retain the following information about accounts payable: invoice date, invoice number, invoice amount, terms, date paid, amount paid, balance (if applicable), and clients names and address.

From the above it is evident that the keeping of financial records is importance for effective management of a business enterprise. No business man can effectively evaluate, appraise and manage his business whether small or big without a proper book keeping and record keeping system.

Thanks very much for taking out time to lean this simple book keeping truth. Try your best to implement what you have in your business and you will for ever be grateful for having effective financial record system in place. If this article make sense to you kindly share it with your friends. I will also appreciate your comment and or contribution to this content.


Wishing you the best in your business endeavors!


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Spiritual interference

One of the most tragic and mysterious cause of business failure is spiritual interference. This can either be satanic or divine. The only cause of business failure that requires proper restitution and adequate divine intervention is spiritual interference. When a business is under the controlling forces of invisible spirits, all efforts employed to make the business grow will prove abortive. Prayers may be offered in vain until the root cause is know and adequately addressed.ess comes into divine curse when the owners of such business forms the habits of eating up what they are suppose to pay as tithes to the house of God so that the ministers of God can live well. When you refuse to pay your tithe, it means you want the ministers of God to go hungry, and God will not take it likely with you. This will now place your business under a cause. You can agree with me that anything under a curse cannot do well because there is an invisible power that is inhibiting the growth of that business. God said, ‘bring all the tithes into my store house so that there will be meat in my house, and prove me with this if I will not open the windows of heaven and poor you a blessing that you not have room enough for it’.

On the same premises, a business can come under divine cause where the owner of that business sheats a servants of God or falsefully deprives an employee of his legitimate wage. If such an employee in hanger and pain cries to God and pronounce a curse on that business, it will surely fail unless justice is carried out immediately.

Satanic influence is one of the strong forces that are responsible for the failure of many businesses today. These can be self induced or supper imposed. A business comes under self induced satanic forces when the owner of the business fails to fulfill the demands of the promises he or she made on strange satanic alters; witch and native doctors, and false prophets alters before setting up their business. So many business men in their quest for quick financial freedom make certain promises on satanic alters- alters of false prophets, marine demons, occult, ancestral alters, and witch doctors temples. The powers behind these alters will surely inflict the business if there is a violation in the terms of contracts. When this happens, the business premises become paraded with demons that drive away customers.

In most cases a business comes under the influence of strange spirits which interferes with its profitability if the business is under satanic causes inflicted on it or its owners by his enemies. There are people who do not appreciate the fact that you are succeeding, and such people can go to any length to hire false prophets to place a curse on your business. And if you are not spiritually strong enough to confront and subdue the effects of those curses through the power of God’s word, then your business will fail within a short period of time. But if through prayers you can adequately confront and subdue them, your business will soar to greater heights even in the midst of your enemies.

Still on the same premises, I want to state clearly here that the grounds on which your business stands matters. If the ground is cursed nothing on it will ever make progress. Therefore, if a business man is doing everything right, and yet there is no meaningful progress he should change location. If location was the cause of his failure, he will definitely succeed in a land that is not under a curse.

Friend, I have elaborated some hidden reasons behind business failure so that you can put them under control and achieve success in your business endeavors. Take a look at your business or where you are working, does it make enough profit compared to your competitors? What share of the market do you have? A thorough evaluation may reveal one or a combination of all the aforementioned factors. If this is your findings, do not be afraid, you can win if you decide to win. For the fact that others are failing or that you are failing does not mean that you cannot turn things around. Determine today to succeed and you will eventually succeed as you commit to the effort that is required to bring your success. Put in effort daily to correct your errors and your business will become profitable again. Read business books, attend business seminars, workshops and associate with positive minds. When you do this continuously, no power can stop you from succeeding. Commit your business into God’s hands and rely on his inner guidance, and your business will succeed brilliantly.

See you at the top!

POSITIVE ATTITUDES FOR SUCCESSFUL LIVING

It is my pleasure to share with you today some vital positive attitudes of successful living. Success is essential to the survival and significance of any human being, but as good as it is, it will not be achieved at the platter of gold. Too many people are looking at the wrong place when they encounter failure or momentary difficulty. They blame their pastor, friends, wife, husband, brother, neighbors, sisters, witches, and the devil, when in the real sense they are the major enemy standing against their own success. There are attitude every success minded individual should imbibe. Here, I am going to talk briefly on ten vital positive attitudes of successful living. These attitudes are not developed easily, but it is something that is worthwhile. Anyone who has them in abundance shall surely be successful, but he that lacks them walks a frustrating lane. These attitudes are as follows.

1. Honesty: Success requires sincerity. In whatsoever you do try to be honest. Dishonesty will may give you some money at the moment, but it will rub you of true friendship and ultimately in the future. And this will happen when you truly need the helping hand of those whom you have cheated in the past.

2. Open Mindedness: You need to maintain an open mind if you truly desire to succeed. You do not know everything; therefore do not play Mr. Know-it-all. Listen to others as they share with you. Any man who believes only in what he knows shall be grossly limited in life, and any man who thinks he does not need the counsel of others shall utterly be destroyed without remedy.

3. Trust: You need to demonstrate some level of trust in those whom you maintain cordial contact. When you trust them to do what they need to do in the right way, you will become duplicated to function appropriately at your optimal best. The more we can be trusted in what we have the more we can be entrusted.

4. Genuineness: He who has resolved to succeed cannot afford the luxury of being fake. Let people know you for who you are, and also for what you stand for. You need to be real in everything you do; wherever you are to everybody you come in contact with. In so doing, you will be able to maintain an indisputable disposition to quality lifestyle.

5. Curiosity: You must maintain an attitude of inquisitiveness. This will help you to see things in better perspective. And you will also be able to see the bigger picture that will guide the way you behave.

6. Readiness to learn: The day you stop to learn, that day you start to die. Every successful man is he who is always a student of some noble education. It does not matter the position you occupy in life, what you do not know is above you, and can plaque you in some way. Therefore, if you want to succeed you must take what is good in others, and add it to your own. When you add the good in others to the good in you, you inevitably make your life better. Irrespective of who has the knowledge, if you require it to move to the next level in life, you must humble your self to learn so that you can succeed.

7. Generosity: There is he that scatters library and yet increases, but there is he that withholds without a legitimate course and yet has nothing to show for all his years of hard labor.

8. Adventurous Ability: A coward dies many times before his death, but the brave die but once. Friend, success is not going to be delivered to you on the platter of gold; you have to contend for it. There are many things to deprive you from pursuing the object of your heart desire, you need to be brave else you never be able to succeed.

9. Majoring in Majors: 80% of what we do is just killing time. It is majoring in minus. If you can take the time out to find out those things that take your time, but produce no tangible evidence, making the required efforts to weed them out of your life, you will inevitably have more time to devote to those things that can actually help you to be intelligently fulfilled.

10. Unconditional love: You must love yourself, love others, love God and love what he has given you the talent to do.

Success is inherent in every one of us, but the number one thing that is standing between us and success is our attitude. You cannot expect to succeed if your attitude is inviting failure. If we can endeavor to put on the right mental attitude that is aligned with success we will discover that it was already there. These ten vital positive mental attitudes for successful living will help you to position your life to enjoy a better lifestyle.

Ask your self, ‘I am I displaying attitudes that are working for my success or that which is working against my successes?’ Your answer to this question will help you to apply your heart to wisdom, and when wisdom is in charge of your life, foolishness will have no choice but to leave. If you discover that your attitude is working against your success, take the necessary steps to begin a journey of self development and improvement. Make a daily commitment to practice these vital attitude for successful living, and your life will never remain the same. This will go a long way to make you a better person.

Take your time to explore this site and get the best benefits for your time. If this article has been a blessing to you, pass it on to your friends, help make the world a better place. Please, feel free to write me and let me know how this site has been of a blessing to you. If you have any contribution to make, please feel free to post your comment on the space provided below.

For more information, counseling, speaking engagement and testimony:

Email: motivation2peak@gmail.com.

Tel: +234-8069506925.

May the good Lord give you double grace for a new season.

See you at the top!

Cordially Yours,

Precious Ogholaja.

PERSONNEL INTELLIGENCE

As I mentioned earlier in the article, ‘Reason why business fail’, the people you employ will either make or mar your business. Your employees are your greatest assets – not your products, services, brand, technology, business name, company name or logo. Your company personnel are the ones who make your products, services, and they are the one who find your customers, convince them, sell to them and also do everything that makes your business a functional entity. Business is all about people. When you understand them, you will be able to utilize every of their potentials to your greatest advantage and their overall wellbeing. If you look after your employee, your business will look after itself.

The ability to hire the right people to work with you in your business empire to achieve harmonious coordination of products and services to achieve organizational goal, integrity and profitability is called personnel intelligence, and no man can truly succeed in the world of business who does not crave to understand, master and major in this intelligence.

No matter how unique and beneficial your products and services are, no matter the sophistication of your employed technology to effectively and efficiently do business, your entire business depends on the people you have employed to create, produce, package, market, attend and deliver them to your customers. In this process many things do go, but it is the skills, carefulness and intelligence of your employees that helps to co-ordinate things in the proper way and gives your company a competitive edge. If your employees are carefree, careless, obnoxious, unskillful, unmotivated, sloppy, dishonest and disloyal, this will inevitably be evidence in the way and manner they deliver your products or services, and also in the way they interact and treat your customer.

It is better to employ a secondary school leaver with a smiling face than to employ a PhD holder with a sober face. A glamorous office is useless if the staffs attending to customers there do not know how to courteously treat your customers in a pleasing and dignified way. On the contrary, if your employees are full of life, enthusiasm, motivation, have total focus, are courteous and dedicated to serving your customer in a pleasing manner, you will always be ahead of all your competitors. This is because your competitors will never be able to copy the effect of your staff who takes pride in their work, who have fun with customers and who actually care about the customers. Even if your competitors try to imitate you or and try to steal your employees they will fail because you have treated your employees in a way that has impacted positively on their lives. This impact has now made them to pledge their undulating loyalty to you for life. No matter what your competitors try to do, they cannot create such an atmosphere. Every unique working atmosphere is peculiar and personalized to the creator alone.

Recruiting the best employee is one of the most difficult tasks in business. It is equally the most valuable because it puts you and your business far above your competitors, and enables you to attain and sustain relevance and superiority. Employing workers is easy, but employing the right one is intelligence. The workers you employ are the ones who create your business-its quality, culture, services, reputation, and its ultimate profit. For the sake of emphasis, I want to repeat what I said above. “The ability to hire the right people to work with you in your business empire to achieve harmonious coordination of products and services to achieve organizational goal, integrity and profitability is called personnel intelligence, and no man can truly succeed in the world of business who does not crave to master and major in this intelligence”

If you employ someone great, you become great and your life will become easier. If however, you employ the wrong person you undermine your lifestyle and inevitably sacrifice the value of your business.

It is my recommendation to anyone who wants to overcome competition to employee workers with better skills and bigger vision relevant to their area of specialization and focus so that they can be able to accommodate your growth. Devote your entire life to learning how to select the right personnel, how to keep them and how to make them produce at their maximum capacity. Be quick to fire when it becomes necessary, and be slow to employ when it is important.

See you at the top!