The importance of record keeping in business
For some time now I have been writing about cryptocurrency. The bull run has really changed lives of those who hold. I remembered back then when we were struggling with the bear market, things were so hard to the extent I was passing through so many things that I just can't explain. But despite all this I kept the faith alive and was able to conquer the world.
Many of my friends recently have been saying that they want to key into cryptocurrency, I see these type of people as gold digger. Where were they when bear market was acting on us? One of them came to me asking me if he can invest $10 and how much will he get in return, I was just laughing, did he think this is a ponzi scheme? Before you key into cryptocurrency just try to research and know how it works. This will save you some stress.
Well, that is not the main topic of today, this post is meant to talk about the importance of record keeping when it comes to business. When I see people saying that they knows the in and out of their business without keeping record I just laugh. They are over estimating the power of good record keeping. One was telling me that what did he needs to be keeping record for, he sure knows how to run a business. Before I talk more permit me to tell you what record keeping is.
Record keeping can be seen or defined as an act of keeping or storing files or keeping information for the purpose of reference for daily or future use. The importance of it might not be seen instantly in your business but with time it will surface. Permit me to tell you this story, do you know I went to a canteen to eat while I was there eating a man came and another man came to meet him. While they were arguing as they were discussing, I heard when they were saying the other man's wife collected money from him through P.O.S. The man was running a p.o.s boot. The transaction had issues but at the end it went through but on that day it didn't show successful. Now a lot of issues arose after so many days. The owner of the P.O.S boot didn't collect money from the lady because he was thinking the transaction didn't go through, so he said he wants to confirm before he collected the money. But while doing this he wrote it down.
To cut the long story short the woman was trying to deny that he didn't receive the money, she has forgotten that the man has record. The case got to police and the man was able to win when he tendered his proof which is the record he has. I know many people who lost one or two asset because of no record keeping. Record keeping is not for business only, with it you can have edge when there is issues with your property.
My uncle bought a landed property, the person that sold the land for him after eating the money was claiming he was not the one that sold the land to him, do you know my uncle was able to win after presenting his proof. This many fact have proven that record keeping is good in business and life in general.
i. Quick reference: When you are good with record keeping you will see that when you need to fall back to some certain things and you have the record it will be easier for you to do so.
ii. Edge over issues: If you have your document of record in place and there is issues you will be able to easily win with it.
Handing over: If you are good with record keeping and you want to hand over to another person, it will be easier for that person to easily take over from you.
Day to day activities: With good record keeping you will be able to spot the sales in profit or loss which you make on that day.
From all that I have said you can see that keeping of record is good, don't be like that person who over looks record keeping, this is where the failure in his business started from. Record keeping is just like your computer backup files, when there is issues this your computer you will be able to fall to your backup files for help.
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It is important that we always have a log file in everything we do, and as you explain it well that would save us from having a hard time.
Greetings and thanks for showing us this valuable contribution.
Hello @tfame3865
We can't leave everything to memory, much less when it comes to business. The best thing will always be to keep records, besides it is the legal thing to do, always when there is money involved in a relationship, it is best to have the points clear, because you can end up losing what you have earned. Good point.
Yes, my friend, you are absolutely right, it is very, very important to keep records of all kinds in the company, as a public accountant I can assure you that it is very important in any kind of business.
These different records will help you to see the behavior of the company and it is also very true that everyone should keep a backup record.
Record keeping is very important for every business as this helps us know were we are leading in business and how much progress we have done in Business.
Keeping record is very important just like you have shared in your story, record keeping has the ability to save anyone from certain problems and difficult situations.