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  The importance of record-keeping for every business can never be overemphasized. Big companies with big turnovers do not joke with their records because they understand that even a minute detail wrongly captured could be a little fox that will spoil the vine they have built for themselves.
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For small businesses, record keeping counts a great deal to the success, growth, and survival of the business. Yet, most small business owners will rather do every other thing than keep records. This simple act of not keeping records is said to be one of the major reasons most small businesses struggle or even fail within the first few years of existence. For most small businesses that have records, the available records often do not take care of the necessary things in their businesses that need to be taken care of. In this post, I will be sharing with you 5 important records I believe you need to keep for your small business.

Stock Register

The Stock Register is an important business record that captures the available products or stocks of a business. This register takes into account new goods/products purchased or produced and also lists the currently available ones. A good stock register should include the date of purchase, source, the number of goods purchased, and quantity remaining.

Sales Register

A sales register is a business document used in keeping a record of the daily sales made in a business. This document will help you track all sales you make in your business and as such easily reconcile any sales dispute when it arises. Most businesses in addition to having a sales register also keep a cash register. While the sales register keeps a record of the day-to-day sales made in the business, the cash register summarizes the sales for a given period (weekly or monthly). A good sales register must contain the following details – date, description of sales, quantity, customer, mode of payment, amount charged and any discount given.
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Cash Disbursement or Payment Register

As the name suggests, this document keeps a record of all cash payments made by the business to anyone. The disbursements could include payment for goods, payment for other business purchases, and other disbursements made out of the business. The following columns could be included in your cash disbursement or payment register – date, description, receiver, amount, mode of payment (Cash, cheque or electronic transfer). If a cheque or electronic transfer, list in your register the specific details, such as the booklet number or reference code.

Bank Deposit Register

With the improvement in the banking system, certain errors in bank deposit processing that used to be recorded in time past have been greatly reduced. However, it will serve you and your business well to ensure you maintain a record of all your bank deposits. Doing this will help you keep track of your deposits even before you lay your hands on the bank’s financial statement. Since human errors cannot fully be eliminated, a bank deposit register will be useful if there is ever a need to reconcile banking errors.

Assets Register

An assets register is a document that keeps a record of all assets owned by your business. It is a very important document to every business as the available assets of a business come together to form the valuation of such a business. Aside from listing the available assets of a business, good assets register also lists the location of such assets and the condition of such assets. Your assets register needs to be updated regularly to help you maintain an accurate overview of your business assets. When an asset is disposed of, either through sales or as a result of unrepairable damages, this should be indicated in your assets register.

Conclusion 

One thing with keeping a record is that you may not appreciate the act until you need the record. God help you to have the record when you need it. Developing a good system of record keeping will help your business not just in the short run but in the long run and the above 5 records are good to start with. Featured Image Source: Shopify
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This article was first published on 1st February 2022

victor-ifegwu-mbonu

Ifegwu-Mbonu Victor is a Personal Growth and Leadership Trainer who provides training and coaching to individuals and organizations.

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