Small business owners, abi una don hear say good record-keeping na key for success? Many people dey think say once dem get product or service wey dey sell, dem don ready. But if your records dey messy like last Saturday’s party, you dey invite trouble for your business o.
The Problem Wey Poor Record-Keeping Dey Cause
Confusion Wey No End
Imagine say you dey try trace how much money you spend for January, but your receipts scattered all over the place, some don tear, some don fade. You no go fit know whether you dey make profit or loss. This kind confusion fit make you take bad decisions wey fit sink your business. For Nigeria, where things dey change so fast, you need to know your numbers sharp sharp.
Wetin You No See, E Go Cost You
Many business owners no dey understand how much dem dey spend on different things. You fit dey spend too much on one area wey you no fit see am because your records no clear. For example, you fit dey spend ₦50,000 monthly for transportation for your delivery business, but because you no track am well, you no fit know. If you track am, you fit see say maybe better motorbike or even better logistics arrangement go save you money.
Wahala With Tax Man
When time for tax dey come, if your records no dey straight, you go enter serious wahala. Tax authorities like Federal Inland Revenue Service (FIRS) need clear figures to calculate your tax. If you no fit provide am, dem fit fine you or even give you problem wey fit affect your business operations. Good record-keeping no just help you know your profit, e also help you comply with the law.
How To Make Your Records Shine Like New Coin
Separate Your Pockets
This one na always number one advice. Your personal money and your business money must be two different things. Open a separate business bank account. This go make am easy to track money in and money out. Don’t use business money to buy food for house or pay school fees. If you mix am, you go confuse yourself and e go be like say your business no dey make money when e actually dey.
Use The Right Tools
You no need to be a tech guru to get good records. Start simple. You can use a simple notebook to write down all sales and expenses. But as your business grow, you need something better. There are many affordable software for small businesses in Nigeria wey fit help you manage your finances. Apps like Pearmonie or Zoho can help you with invoicing, tracking sales, and managing inventory. Even simple spreadsheet like Microsoft Excel or Google Sheets fit help you organize your data well.
Keep Everything Tidy
Make it a habit to record every transaction. Even small sales wey you think say no matter, record am. Do the same for expenses, no matter how small. Keep all your receipts, invoices, and bank statements. Organize them properly, maybe in files or folders. Do this regularly, maybe weekly or monthly, so that problem no go come dey build up.
Understand Your Numbers
Recording everything is just the first step. You need to look at the records to understand wetin dem dey tell you. How much profit you make last month? Which product dey sell pass? Which expenses dey too high? Ask yourself these questions. This analysis go help you make better decisions for your business, like knowing wetin to stock, wetin to advertise, and where to cut costs.
Your business records na like the engine of your car. If e no dey work well, the car go soon break down. So, make sure your records are always in top shape. E no go only save you from wahala, e go also help your business grow strong and steady.
