Let’s see what an accountant explained to Modou:

Here are three reasons why you must absolutely keep records for your business:
• You understand your business situation better and develop better sales strategies.
• You improve your financial planning.
• You have easier access to financial services.

 

 

 

 

YOU UNDERSTAND YOUR BUSINESS SITUATION BETTER AND YOU DEVELOP BETTER SALES STRATEGIES

If you keep records of your business finances, you are able to assess your expenses and income and this gives you the ability to know if your business is doing well or not. You can also see which expense items are taking up too much of your resources so you can find a way to reduce expenses without reducing the quality of your products. This allows you to set competitive prices and increase your sales.

YOU IMPROVE YOUR FINANCIAL PLANNING

If you keep records of your business finances, you are able to assess your expenses and income and this gives you the ability to know if your business is doing well or not. You can also see which expense items are taking up too much of your resources so you can find a way to reduce expenses without reducing the quality of your products. This allows you to set competitive prices and increase your sales

YOU IMPROVE YOUR FINANCIAL PLANNING

If as an entrepreneur, you are able to remember your business transactions and clearly identify what allows you to make profits or losses, you will be able to make good business decisions for the future of your business. In addition, you can anticipate and foresee potential risks that your business may face and put measures in place to ensure its continuity. Quite simply, bookkeeping gives you visibility without which you will waste a great deal of energy for little result

 

YOU HAVE EASIER ACCESS TO FINANCIAL SERVICES

Financial institutions such as banks mainly use your registered accounts to assess your financial well-being and your ability to repay loans. Many entrepreneurs complain that they are not supported by banks to develop their activities or seize opportunities. Women entrepreneurs are more often concerned by a lack of access to funding. If you can produce documents that show your activities, your cash inflows, and outflows that demonstrate that you have a good capacity to repay loans, the banks will come looking for you wherever you are! If, on the other hand, your business is doing well, but you are unable to show this to your financial partner with supporting documentation, you will probably never find common ground.