Many entrepreneurs or start-up entrepreneurs rely on feeling to control usaha. In fact, whether the business progresses or not will be controlled through financial reports, you know.
Marketing expert and Inventure Managing Partner Yuswohady said that the absence of financial reports would make it difficult to find out your business makes a profit or not.
Apart from that, there is a possibility that your personal and business finances will get mixed up which will ultimately be detrimental to the company.
“So we get mixed up and never calculate how many sales, cost, how much profit. If we don't have these records we don't know whether there is progress or not. Even though MSMEs are the ones who "It's true that you have to have a growth mindset. This year has to be better than before," said Yuswohady when talking with Qasir at the end of November 2020.
Therefore, he continued, the owner's loan must also be recorded in the financial report. "In fact, there needs to be interest as company income. You can't do it if you don't record it. Then there will be no sense of responsibility to pay it back. In the end, the company's money runs out. Even though it's actually his money too," said Yuswohady.
New York Times bestselling author and radio host, Dave Ramsey, has also said the same thing. "A budget tells you where your money is spent. Everything has been recorded completely. Instead of having to keep guessing how much money you have," said Dave as quoted from his personal page.
The Accounting Student Research Journal (JRMA) of Kanjuruan University Malang even stated that the main obstacle often faced by small businesses is a lack of understanding of the importance of income records and expenses.
Income and expenditure records are one of several forms of financial reports. The form can be recorded separately, it can also be combined in the cash flow statement. The income records in question include, for example, proceeds from the sale of goods or services or capital injections, while cash expenditures include, for example, production or operational costs.
Well, there are at least seven losses that you will face in your business if you don't have financial reports such as records of income and expenses. Here are the seven losses as summarized by Qasir from various sources:
1. Not Knowing the Assets Owned
The definition of assets in the business world is all the rights that can be used in the company's operations. Company assets in a financial report are current assets, long-term investments, insured tax assets, fixed assets and intangible assets. If you don't have financial reports, you don't know the details of the assets you own, including long-term investments and tax-insured assets which are very valuable for business development and tax reductions that you can get in the future.
2. Not Knowing the Costs Incurred
The most important factor is the costs that must be incurred in running a business. This cost or capital factor does not only occur at the start of a business, but throughout almost the entire production process, from procurement of goods, distribution, to promotion. This needs to be noted well.
Yuswohady added, the costs you incur will ultimately determine the price of your product or service.
"Cost must be noted. This month cost 100, next month it will be 120. You have to check why this has increased. While sales are the same as last month "Then, that means our profits will go down, with whether prices need to go up or not if costs go up," explained Yuswohady.
3. Not Aware of Company Asset Leaks
Leakage or embezzlement of assets can happen anytime and anywhere. Not having good financial reports will make you blind about the assets you own or if the goods that are the 'life' of your business production are damaged or lost. It could be that you don't realize that you are being cheated by an employee or distributor.
4. Confusion When Going to Business Expansion
Jcsbusinessconsulting says, you will have difficulty expanding your business when it's time to grow. For example, opening a branch or recruiting new employees. Lack of financial records will complicate things.
Would you give a loan to someone who has no evidence of responsible financial practices? Would you work for a company that was careless about reimbursement? Are you willing to rent space to a tenant who cannot provide an income statement for the last few years? The answer to all these questions is a resounding, “No.”
5. Has No Accountability to Interested Parties
Apart from being a form of accountability to shareholders, good financial reports will be useful if you experience financial problems and want to apply for a loan from the bank.
The Indonesian Accountants Association (IAI) on its official website reported that by reading the borrower's financial report, creditors can predict whether your business will develop and be able to repay the loan within the specified time or no.
Therefore, you need to record every transaction, including income and expenses, so that you can convince creditors that your business is running smoothly and has healthy financial reports.
6. Tax Reports Can Be Your Nightmare
When your business grows, of course you have an obligation to pay taxes. Well, tax reports can be your nightmare if you don't have good financial reports. Minimum income and expense reports.
"Tax reporting is difficult and complicated, you know. If you don't have a financial report, add one," said Yuswohady.
Do you want to redo a year's worth of financial records in a day or two? Is it enough? Of course not, right?
7. It's Difficult to Determine Your Own Salary
At the end of the day, business is done to make a living, right? If you don't have a bookkeeping system, you can't know accurately how much your own salary is. Will you rely on feeling or just guess? Remember, the less you play guessing games in business, the more successful your business will be.
How to Make an Expenditure and Income Report
Bank Indonesia in a workshop on financial reports for individuals and MSMEs in 2018 in Jakarta taught how to create simple tables of routine income and expenses. Create four columns containing date, information, income and expenses. All these records can be seen according to the money coming in or going out as needed.
Instructions for Filling Out Expenditure/Income Records:
- Fill in Month and Year, fill in the month and year when the recording was made (recording period)
- Date Column, fill in the date when the income/expenditure occurred
- Remarks Column, fill in the type or designation of income/expenditure that occurred
- Input/Output column fill in the amount of money coming in/out
- The Total Income/Expenditure line is filled with a summary of the amount of expenditure incurred.
For detailed records, Bank Indonesia recommends separating expenditure and income records by creating different tables.
For Production Records:
- Create 5 columns with a list of expenses, amounts, plus frequency (how often money comes out, for example per day or per week).
- Fill in the No column with the recorded expenditure number.
- Expenditure Name column fill with the name of the identified expenditure.
- The amount column is filled with money paid out to meet the type of expense recorded
- Fill in the Frequency Column with the frequency of expenditure (depending on needs).
- Total Expenses line with total expenditure amount.
Similarly when making income records. The columns are the same as expense records, just change the table name. You also have to record your income in detail so that it makes it easier to control your business.
There's an Easier Way
The thought of creating tables and columns to record sales transactions in your shop really makes you dizzy. This is what makes many entrepreneurs decide not to record their transactions, or even control their daily sales transactions.
If you also experience this, Qasir has the solution. With the Qasir application you can not only record your sales transactions automatically, but you can also view a summary of daily sales transactions in real time on the dashboard. You don't have to be able to account! You can even make a cash recap to balance the value on the note and the physical cash you receive. You can also receive digital payments (mobile digital payments) with QRIS.
All of this, the great thing is, you can enjoy it for FREE, with no time limit. How to? Easy! You only need to download Qasir here, then register, then you can immediately use this application like a cash register or cash register.
Remember, you can do all this for FREE...TIS...TIS!
Well, what are you waiting for?