Proper Record Keeping is Crucial for a Small Business!!
Maintaining proper and accurate records is the most important function for any business owner. For small business owners it is even more critical given that you have limited resources. If you do not know what your business has done or how it is doing then you will eventually fail. You should know what your revenue and expenses are for each month to determine your plans for the next month or quarter. If you are digging for receipts and invoices from January in December to determine how much you actually made this year, you may be in real trouble with your bank and Inland Revenue. A simple solution is an accounting software like QuickBooks or an Excel spreadsheet which will make keeping track of your business activities a whole lot easier, but if you are a very small business, and your records are kept manually, choose a simple record keeping system and stick with it. You can get a simple banker’s box and place 12 hanging folders in it. Label each folder with the name of a month. Place each month’s relevant information in the appropriate folder trying your best to keep the dates in a chronological order. That way, when it’s time to close out your books and making sense of what transpired during the year, you have little or no headache.