Q-04Money
I do not know where the money goes
Money comes in and disappears, and you cannot say on what.
You do not have a money problem yet. You have a records problem. Until money in and money out are written down every day, every other decision is a guess. A cash book and five minutes a day fix most of it.
4 things to look at
- Nothing is written down, or it is written down days later from memory.
- Business and personal money are mixed in one pocket, wallet or account.
- Small costs are invisible. Taxi fares, airtime, change, lunch.
- Nobody reads the records, so there is no reason to keep them.
Checks you can do yourself
These cost nothing but time. Do them in order. If they answer the question, you do not need us.
Start a cash book today
Four columns: date, what it was, money in, money out. Print the cash book page or rule a notebook.
Keep every slip
One envelope a week. If there is no slip, write the amount in the cash book straight away.
Pay yourself a set amount on a set day
Taking cash from the till when you need it is the most common leak. Decide a wage and record it like any other cost.
Add up once a week
Total sales, total costs, what is left, and who owes you. Ten minutes, same day each week.
Count your stock once a month
If the stock is lower than your sales explain, something is being lost, spoiled or given away.
- You have started a cash book more than once and stopped.
- More than one person handles the money.
- You need records for a loan, a tender or a tax return.
- The totals and the cash in hand do not match.
Records Setup
Money in and money out, written down every day in a way you will keep up.
N$599
Related questions people ask
Do I need accounting software?
Usually not at this stage. Software does not help if nothing is entered. Get the daily habit working on paper or in a simple spreadsheet first.
How long should I keep records?
Keep them for several years, and ask the Namibia Revenue Agency or a registered accountant what the law requires for your kind of business. We do not give tax advice.
Related questions
I am busy but not making money
Sales are coming in, and there is still nothing left at the end of the month.
OpenI make plans and do not follow them
The plan was good in January. By March nobody had looked at it.
OpenI need a business plan
Start with who will read it. That decides what kind of plan you need.
OpenTell us what you are trying to decide.
You do not need a business plan to talk to us. Say what the business is, what you want from it and what is in the way. A Business Check-up costs N$199 and comes off any other service you book within 30 days.