5 Basic Steps to Keeping Financial Records

financial records

Spread the love

As an entrepreneur or a business manager, keeping proper financial records is a must-do. Having proper records makes your business more productive, helps it grow, and also helps you plug leakages. Though some persons still feel it is a tedious task when it shouldn’t have to be.

Below Are Some Steps to Guide You In Keeping Financial Records

· Get An Accounting Software (either Cloud or On-premise)

It is important you have a software/system in place, you need to keep track of your in-flows and out-flows with ease. Ensure the system you choose best fits your business and takes care of your day-to-day activities, going with cloud-based software can be helpful, you can manage and view your data anywhere and anytime.

Contact SOFTCODES, a company with over two-decade experience in developing and deploying business management software solutions (Accounting, ERP, HR and Payroll, CRM, etc.) across all industries and market segments.

· Have a Time-Table

This might look absurd but it isn’t, you need to be on top of things. Choose a time that works (daily or 2 days) for you, it is not advisable to let things pile up. You might miss important information or simply muddle things up, getting things done at the right time goes a long way.

· Seek The Right Counsel

As an entrepreneur or business manager, when keeping your financial records, you might not be conversant with all the rules and regulations, it is important you ask for the right counsel. Seek help for what you don’t understand, this can mitigate against making errors that might be costly.

· Reconcile Bank Statements

Another step to keeping financial records is to make sure you match all your bank transactions against the information in your records. This makes sure all in-flows and out-flows are accounted for. It can be done easily using standard accounting software (contact SOFTCODES to deploy one for you).

· Monitor Your Invoices

If you don’t keep track of all your invoices, this might lead to cash-flow problems. Late payments can cost a business, know your receivables at all times. It is important you include it in your financial records.

Conclusively, if after putting in the effort to keep proper financial records and you’re not using the information from it, you might miss out. The records tell you whether you’re making profits or losses.

REFERENCE: Sage

Tijani Olayiwola Ahmed: