BERNARD…you can’t manage what isn’t measured, and so the reasoning behind good record keeping is that it allows business owners to learn and grow from their own experience commercial.
FINANCIAL Courts Ready Cash says borrowers, especially small businesses, could get more financial support if they kept better records.
Atasha Bernard, General Manager of Courts Ready Cash, during the recent hosting of the Courts Ready Cash Business Survivor webinar series, said the task of keeping records can be secondary to day-to-day business operations. However, failing to effectively maintain up-to-date and complete records can harm long-term business operations.
In the webinar titled “How to Keep Business Records: Your Roadmap to Success”, Bernard explained, “Keeping clear records of income, expenses, employees, tax documents and accounts is not just a good deal. It can give you peace of mind, help you track progress toward your goals, and save you time and money.
According to Bernard, “You can’t manage what isn’t measured, and so the reasoning behind good record keeping is that it allows business owners to learn and grow from their own experience. commercial.”
“Keeping your records under control will help you understand where your business is today and also predict future profits or losses. Plus, good record keeping will also show you where your business needs to be improved or reinvented,” Bernard said.
Bernard advised companies to set up “a standardized but user-friendly accounting system, ensuring legal, financial, regulatory and operational discipline”.
“Proper filing and retention of records is the first step in enforcing industry regulations and broader business compliance. A fully orchestrated records management system allows you to locate essential documents for tax returns and other mandatory documents,” she said.
“Document management is even more critical for certain types of documents, such as financial documents, as failure to comply with this requirement can result in severe penalties, ranging from government fines to potential legal action if non-compliance is deemed to be intentionally negligent,” she added.
The CFO said keeping accurate and up-to-date financial records will help borrowers looking for a financial boost when applying for loans. “These finances include income statements as well as balance sheets that show your company’s assets, liabilities, and equity as of a specific date,” she said.
Bernard advised that, to keep business records organized, business operators should get into the habit of tracking all financial and non-financial transaction information.
“Keep track of every amount you spend on your business and every amount you take in as sales. Be sure to separate personal and business expenses even if you still reimburse your business when you pay personal expenses from this account. Make sure everything you capture includes an item description, amount, and date,” Bernard said.
This information, she said, needs to be saved virtually or manually, however, “after you save your financial information, it needs to be in a usable form, so you can hand it over to your accountant to save it or save it.” save yourself.
“Enter the information into a spreadsheet or accounting software. You may find that online software works best for you. you and your accountant can view and discuss the information. Just make sure everything is recorded every month so you can review it,” she said.
Bernard indicated that even if you are unfamiliar with accounting systems, “you should be able to get your record keeping up and running with minimal effort. The hardest part is getting the process started.