Records
keeping are important, whether in your business or personal life. Well kept records helps chart a course and prompts you to the next line of action. They show whether you
are still in line with your vision or have derailed.
Most
developed countries like America have rich histories because they have well
kept and documented records.
In
business, Financial Records Keeping (FRK)
creates a solid history for your business.
You can track your transactions; your sales, inflow and outflows;
monitor growth from inception to date.
Financial records keeping (FRK)
will prevent financial clutter and help you in making strategic decisions.
If you
are in the habit of destroying financial records like – receipts, deposit
slips, contract agreements, be careful because you may have regrets someday
when you need these documents and do not have them anymore .It is not too
late to start keeping records, you can start now.
As you
plan for a new week, month or year, make record keeping part of your
goals. Below are some reasons why record
keeping is important.
THE IMPORTANCE OF FINANCIAL RECORDS IN
YOUR BUSINESS
1. Helps establish a check system for
profit or losses in your business
3.
Helps
in your tax computation (so you do not overpayment or under payment of taxes)
4.
Monitors
business debt profile (whether it is increasing or decreasing)
5.
Helps
you in business valuation (when you want to sell some part or all of your
business)
6.
Helps
determine your business cash inflow/outflow pattern
7. Creates financial integrity for your
business (your business records speak for itself)
THE IMPORTANCE OF FINANCIAL RECORDS IN
YOUR PERSONAL LIFE
1. Helps you determine your networth
2.
Helps
you evaluate how well you are achieving your financial goals
3.
Creates
transparency and limits suspection
4.
Helps
you know your money character - spender,
miser, donor, saver, strategist, futurist, announcer, etc
5. Helps you review and increase your
financial goals
Don’t
just invest in a record keeping system.
Invest in a relationship with an expert which will pay you now and in
the future.
Your accounting software
will only show you figures. It’s the
accountant/finance expert that will explain what each figure represents.
Ehis Egbuji.
