The reason for keeping records is so that at the end of every period you can see your scoresheet. Or let’s call it sales sheet. Scoresheet in the sense that you get to know how your business is performing during the period.
For business owners, there are chances to lose out on record keeping. This can be due to the workload in terms of administration. As you are thinking about how to restock your inventory, you are also thinking about how to get sales for your business.
In short, a typical business owner has much to think about. If you are not deliberate about the bookkeeping culture for your business, you will be missing out on some business transactions. When this is the case, it does not look good. To avoid this chaos of running around at the end of the financial or sales period, you need to take recording your transactions seriously. To the very smallest transaction.
Valid Reasons Why You Need To Keep Record
Apart from the fact that you need to see how your business is doing in terms of sales, revenue, and expenses performance. There are a couple of other reasons why you need to keep your accounting book up to date.
A business has many activities going on every day as the business is run. These activities can span hundreds or thousands depending on business size. Some of which can have a direct impact on the business. The fact is you can’t keep all these activities or transactions in your head. That is why you need a bookkeeping record system that helps you retain this information for future reference.
Let’s take a typical business scenario into context. On March 25th, 2023, Ms. Susan walked into the store to buy some items which amounted to a sum of #235,000. Her purchase was packaged, she made payments and left.
Some days after, Susan showed up to complain about how she could not find an item she paid for in her last purchase. What is the easiest way to see if Ms. Susan really made payment for that item?
The daily sales record will be your bailout. You can easily scan through the sales record for the 25th of March, 2023, and see if she indeed was charged for that item without adding it to her package.
This is just one of the many scenarios that might require that you use your record books as a reference to sort out discrepancies.
Having a good bookkeeping system also helps you monitor your business cash flow. You know what comes in and what goes out in terms of goods and money. It can also be an important document necessary when filing for taxes and other government levies.
Things To Keep In Place For An Accurate Record Keeping
1. A Good And Reliable Bookkeeping Software
The first step to having an accurate bookkeeping record is using reliable and efficient software to record every business transaction. That is why Kashbuk is your sure bet when it comes to reliance, efficiency, and accuracy in recording your daily business transactions.
This bookkeeping app does not only help you record sales and expenses. With Kashbuk you can easily track debts owed by customers and the credits you get from your suppliers as well. All these records are stamped with the date of entry which is one of the things you need to look out for when choosing a bookkeeping software app.
2. Record Transactions Immediately
With a good recording system, you have to ensure that you record every tiny bit of business transaction as soon as they are carried out. Leaving out time to enter them can make you skip or miss out on some vital transactions which can cause discrepancies in your accounting at the end of a sales day.
3. Use A Clean Sheet For Daily Records
Usually, when you use the traditional bookkeeping method to record your daily transactions you might be tempted to continue with the previous day’s transactions without indicating differences in the days.
That is why it is better to work with a digital bookkeeping app like Kashbuk where you get a fresh recording page for your daily sales and expenses. This will make it easy to track your profit on a daily basis.
It also makes it easy to track transactions that had take place in the past few days.
4. Add Customers Details To Transactions
When recording an entry, you might need to add the customer’s name and phone details to the transaction for ease of reference. This can help you trace the customer when there is an issue and when necessary.
Kashbuk offers you this feature where every business transaction carries a part where you can add a customer’s name and phone contact to the entry. It also becomes useful when you want to create and share the transaction receipt with customers.
