Managing a business is like running a small army. You need to make sure your employees are well trained, for them to be productive and fully understand the importance of your line of work. Each employee must follow the regulations you set forth and yet use their own initiative when necessary to facilitate sales. In addition, your products and services need to easily adapt to the demands of an ever-changing consumer market.
It is an understatement to say that advertising and imaginative product displays grab the attention of prospective consumers. After all, these are two aspects of business ownership that the public is meant to see. Maybe this is why all too many small business owners fail to place proper attention on their business records. Accurate bookkeeping may be for your eyes only. However, these records are definitely key to the success of any business for a plethora of reasons.
Productivity – now and in the future.
You should not only analyze sales figures that your company has achieved in the past but how these numbers will serve your business dealings in the future. Does one product line literally fly off the shelves, while another product requires a series of markdowns to entice buyers? Charting these numbers carefully will prevent your buyers from acquiring new items that spend more time in stock than on the move.
Maintaining accurate documents and records of business happenings is essential for a company to stay compliant. For instance, sending call center recordings to transcription services to be transcribed enables compliance officers to more efficiently detect potential problems. This is done by running a keyword search across the conversations to locate any violations, rather than have to listen to the entire recording. This kind of documentation also acts as a backup system in the event the original audio or video recordings are damaged or destroyed.
Perhaps the most important reason for accurate bookkeeping pertains to taxes. These can be anything from sales taxes on consumer purchases, to property taxes assessed on your land holdings. Smart business owners know from experience, that keeping “spotless” records goes a long way towards avoiding unpleasant encounters with the IRS and state level collectors. Both federal and state tax boards appreciate clear, concise business records at all times.
Inventory – know what is available and how fast it moves.
When a customer requests a particular product, do your sales associates know automatically if and when it is available? Staff members should be able to search digital records of your inventory stock both on-site, off-site and in-transit within minutes. It stands to reason that if you can give clients a firm answer quickly and efficiently, you’re more likely to make the sale.
Sales quotas and employee productivity.
A proven method for encouraging individual performance is the implementation of sales quotas. These can be focused on a particular product, to bolster a new marketing campaign or schedule on a quarterly basis. View this as yet another reason why your fiscal books need to be kept up to date. Team members will be eager to record transactions as they occur. Later you’ll be able to recognize employees with bonuses to their salary when appropriate.
How will you know if your business has turned a profit if you don’t know how much you’ve spent on materials and manpower? Being able to track each one of your expenses is the only way to gain knowledge from both short-term purchases and long-term investments. While carefully tracking your expenses, you might uncover a certain purchase or product that is costing far more than its ultimate worth.
Financial records are a view into the future.
In today’s world, few entrepreneurs are graced with anything from free merchandise to volunteer employees. Precisely because every business produces bills and invoices, it is imperative that costs are studied in a timely manner. This gives you time to change course if necessary before permanent financial damage has been done.