Documentation in business is key. The other day I was talking to a client over an online consultation. Their problem was that they didn’t know how much they were making although they made money daily. So they could determine how much to pay themselves.
How will you know what your making when your not recording down things. So I asked them, how much did you make on 1st July and they had no clue. Ofcourse I didn’t expect them to know, our brains also have a limit to. You can’t remember everything.
So I told them them if you had a records book where you recorded every payment and every expense you woul be able to go back to your book and check the page on which you recorded the transctions of 1st July and then you’d be able to know.
If you don’t record the transctions in your business you can’t do anything else. You can’t know how much you earn so won’t be in position to know how much to pay yourself. You wont be able to know if you can afford to hire or how much you can afford to pay people you want to hire. You won’t know if you can offord to rent office space or not. You won’t know if the business is growing or not.You won’t be able to know the value of your business. You just won’t know anything and will have no basis to make an informed decision.
At Gokafoods we record every transction. We get payment receipts for our purchases, issue payment vouchers to people we need to pay but don’t have receipts like the milk man. All the assets we buy like the new sales motorcycle we have them receipted in Gokafoods names.This makes accounting for resources entrusted with us easy creating tranparency and trust the two most important things in business or where money is involved.
Our new sales motor bike should help us increase our sales capacity/reach..We continue to raise money to buy a doughmixer,industrial oven, another sales motorcyle among other things to enable us continue to build and grow the business together as an experiment the first of kinds whose success should open doors for many other things/opportunities.
Jaluum Herberts Luwizza is a Speaker,Writer, Columnist with the C.E.O Magazine and Contributor with the Nile Post.He is also a Business Consultant with YOUNG TREP East Africa’s No.1 Business Management and Consultancy firm that helps people start and grow profitable businesses.twitter:jaluwizza
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