Why does every entrepreneur or business owner need to understand how to recapture business receipts? In short, sales result bookkeeping is a crucial tool for achieving business success and sustainability.
With a comprehensive sales record, business owners are able to better control their finances, make smarter decisions, and help in adapting to market changes.
The importance of bookkeeping sales results
Before explaining how to recap business receipts, it is important to first understand the advantages of bookkeeping for businesses. Here are some reasons why bookkeeping sales results is important.
1. Monitoring financial condition
Every sales transaction is clearly recorded in bookkeeping, and if it is neatly arranged, business owners may more easily monitor their accurate financial condition and business income.
Bookkeeping can be utilized to identify sales trends and help in future financial decisions.
2. Making business decisions
Accurate bookkeeping of sales receipts can help us make better decisions. From that bookkeeping, We can see which products or services are selling the best, when is the best time to promote or reduce prices, and what the customer’s purchasing trends are.
3. Stock management
By recapitulating business receipts, we can track product inventory more easily. This helps to avoid out-of-stock situations, which can impede business operations, or even avoid unnecessary stockpiling.
4. Make tax reporting easier
Obviously, as entrepreneurs, we must pay taxes. Tax is normally calculated based on how many products we sell. Evidence of sales results will be easy to find when we conduct the bookkeeping. Without bookkeeping, tax calculation will be complex and prone to legal issues.
5. Avoid deception
By recording all business transactions, we can easily detect suspicious activity. This protects the company from future financial losses.
How to Simply Recap Business Receipts
After knowing the advantages of bookkeeping or recapping business receipts, how do you accomplish it correctly and simply?
Bookkeeping of one’s own business results can be done manually or on a computer using Excel. However, doing it in Excel is highly recommended to make it neater.
1. Record all of transactions
Record every business transaction or receipt. For example, sales of products or services, purchases of raw materials, operational costs, and others. Ensure to record dates, descriptions, amounts and transaction values.
2. Categorize transactions
Don’t forget to arrange recorded transactions by category, such as sales, purchases, operational fees, or others. This will help us to clearly examine the incoming and outgoing cash flows.
This categorization can be accomplished using a manual ledger (handwritten) or with the help of computer software.
3. Calculate profit
Calculate the total revenue from sales and the total expenses from production costs. After we have met the results, we can begin to reduce the total income by the entire expenses.
The result of that reduction is the business’s cash financial condition; if it is positive, the business will make a profit; if it is minus, the business will make a loss.
4. Monthly evaluation
Actually, the process of recapping business revenues has been completed up to step three, but we still need to carry out a further process called evaluation. Look at the profit and loss report periodically, it can be every month or every quarter.
The importance of this evaluation is to gain a better understanding of the company’s financial performance.
5. Use OCR software
If we want to make the recapping of business receipts easier, we can use OCR software, such as Fintelite’s OCR+.
OCR+ can make the process of managing business receipts more simple and easy. With the help of AI embedded in it, all recording processes for business financial analysis can be completed automatically and accurately.
Also, the results of the analysis can be easily extracted in many formats, such as PDF, Excel, and others.
See the business trend from the recap of business receipts
That’s short information about how to recap business receipts. It should be reminded once more that the recapitulation process or cash bookkeeping is very important for business continuity.
Accurate, detailed, and well-organized records will help us understand financial performance. If performance is known,business decision-making becomes easier and more precise.
