Record keeping in business is required by the law. Common sense, ethics, corporate governance, and best practice stipulate keeping proper books and records in the business.
Prospective entrepreneurs should first cultivate the habit and master the art of record keeping before starting up their businesses.
Record keeping or records management is the process of creating and maintaining information about business transactions in hard copy or digital form for legal, financial, non-financial, employment, statutory or historical purposes.
The scope covers business documents, financial data, business agreements, executive decisions, and regulatory compliance requirements.
There are serious consequences when small businesses do not keep proper records. They are vulnerable and liable to penalties and lawsuits. Entrepreneurs lose their investment if their businesses are shut down due to audit failures.
An up-to-date database is the most useful resource for planning new marketing and sales strategies. Unfortunately, most business managers fail to give bookkeeping due to importance and their campaigns end in tragedies.
Proper business record keeping provides the business a real advantage over the competition in different ways.
- It helps you to manage your accounts, interests, taxes and working costs effectively.
- Tells about cash in hand
- Act as a resource for new strategies.
- Tells about the success of your past campaigns and improvement in the present campaign.
- Helps in finding solutions for business issues.
- Tells about the customer service and employee efficiency.
- Helps in monitoring company growth rate and profit.
- How your business performs against your competitors.
- Tells about hidden and unexpected costs.
- And most of all it is the most resourceful adviser whenever your business is in serious trouble.
Today’s database management and recording keeping solutions make record keeping a simple task. These systems help in digitalizing the whole business data and arrange and keep them in the most convenient manner. Now you do not require paperwork, large storing places of the morning to evening document searches.