Now that you’re into the stage of running your school business, it’s really important to keep track of your finances! This blog explains the process of record keeping and why it’s crucial to the success of your business!
What is record keeping?
So what is record keeping? Record keeping allows your school business to keep track of the money coming in and out of your business.
If we want to know our business’s financial health, we check the businesses financial records!
Why should I keep financial records?
Record Keeping is vital to the running of a successful business. There are many reasons why it is important to keep good financial records, here a just a couple of things you could do with good financial records:
- See how much income you are generating and at which times of the day/week/month/year you generate the most.
- See if money is owed to you and how much.
- See which of your products/services is making the most profit, and which is making the least.
Good financial recording will provide your business with information that will allow you to grow and nurture your business. But don’t just take our word for it! Check out what other schools in the School Enterprise Challenge have done with their financial records!
Lusoti High School in Swaziland won a prize in the School Enterprise Challenge 2013. The success of their agricultural business was built upon their commitment to accounting and record keeping. The team created three accounting positions: a financial manager, a sales accountant and a cost accountant. These team members helped the business to run smoothly and provided information which allowed them to produce an economically viable business. From good record keeping they were able to see that they could sell their produce at 50% of their competitor’s price but still run at a healthy profit! Awesome!
It’s not just businesses that can benefit from good accounting and record keeping. Setting up accounting systems and practices for your school business offers a great way for young people to learn about finance, providing them with the knowledge and skills they need to manage their own money for life!
All School Enterprise Challenge participants have been sent a NEW Guide to Accounting and Record Keeping so check your email NOW. The guide provides a step by step guide for setting up your own financial records and has a number of useful templates that provide a fantastic starting point for any school business. For more information read the guide, or email email@example.com.