Surely, every entrepreneur wants his business to succeed. One of the measurements of business’s success is having a high sales volume. To achieve high-volume sales, hard work and right marketing strategy are needed. Starting from marketing, build and expand the network to improve the quality and quantity of production. Due to the many things to do related to increasing sales, sometimes the owner ignore the other necessary thing, that is recording business finance.
Some entrepreneurs consider that high sales volume will result in high profit earned. However, this opinion is not completely true. Indeed high sales volume will give more profit. Yet, turnover is not the business profit. The profit is earned by deducting the sales earning to production cost. High turnover along with high production cost will not earn any profit, instead of a business loss. To avoid this problem, the owner needs the right system to record his business financial.
Every existing business will have income and expenses transactions which the receipt note should be available to be recorded. Generally, at the beginning when the business started, the owner will record the financial transaction regularly. However, when the business grows and the owner has more task to do, the business will ignore the financial record. Financial record as necessary as the sales volume earned. The proper and accurate accounting system helps the owner to calculate and control the expenses. Besides, accurate financial record allows the owner to design and establish marketing strategy precisely. Therefore the owner can reduce the marketing cost to gain greater profit.
Why Are Financial Records Required?
There are some reasons why financial records are necessary for entrepreneurs. Among others are:
- As a decision-making tool.
Monitoring financial progress regularly enables the owner to review the business growth, including to decide the investment needs. For example to purchase new machines, set the marketing budget, or other strategic decision based on the current financial information.
- Report the business tax as part of the citizen’s obligation. The tax calculation is referring to the financial statements obtained from the balance sheet and income statement.
- Financial report as the base to set the business feasibility in order to have additional capital from other parties, such as bank or investors. Financial reports tell the health of business financial condition.
The financial record in business is very vital and should be supported by the owner’s knowledge and experience of bookkeeping. However, not every entrepreneur has the capability to make the financial record, and this is the challenge for them. Moreover, when the manual accounting system is still applied, where more papers, enter transaction manually and these must be done very carefully to reduce miscalculation. Such a time consuming and hard work to do!.
The best solution to solve the problem is by implementing accounting software. This accounting software is one of the tools needed to process data and present accurate information quickly, like Zahir Accounting. Zahir Accounting is not only to record the financial transaction but also provide comprehensive features, such as the business dashboard that helps the owner to monitor and evaluate the business financial quickly. Using Zahir Accounting in business will make the financial record easier, more consistent, and produce an accurate report. Besides eliminating the miscalculation due to human error, it also provides a thorough overview of business performance. The last and important thing is, the owner does not need to be the accounting expert first to create the business financial report.
