Hey sewlover,wondering what I’m doing in the video above?
Well, that’s me entering into one of my journals an effective monetary transaction that just occurred on TheQEffectz; minus the two ‘udaras’ you can see at the corner 😅
Well you see, whenever money exits or enters here, I write it out in my business journal. Then at the end of the month, I enter these transactions into my Trial balance, cash/Bank book and other General ledgers. Then towards the year, I take all these entries to my Revenue and Expenditure account to ascertain my profits or loss for the year.
Now, I’m sounding all gibberish, right?
Well don’t you worry about it. Just join TheQEffectz Advanced Class this session and I will not only show you how to enter transactions on a daily basis but also how to compute your profit at the end of the year.
Keeping records as a business owner or controller is one of the most important aspect of owning and managing a business. Like I’ve said time and time again, it is not enough to own the skills of sewing and fashion designing. If your intention of acquiring them was to make a business out of them, then you must be ready to really own and manage one. And this includes keeping records of every transaction of your business….no matter how small scale it is.
I remember that a week ago, I threw a question at the members of TheQEffectz Sew Community( by the way, you can so join our community, just simply visit here to learn all about it and also how to join) and the question was simple.
How do you record the discount you give your clients or customers during a course of a transaction? Take for instance, a client brings two sets of fabrics to sew perhaps two simple skirts and blouses. Your regular charge per skirt and blouse is N5000. After hagging with you, you finally decided to give him or her a discount of N2000. Thus, in the end, you will be earning N8,000 for the two clothes you plan to make, instead of N10,000. How do you record this transaction in your books?
And the responses were hilarious. I mean I literally teared up. See for yourself.
While it is possible to employ someone to manage and keep your records, it is much more economical, especially if your business is a start up to learn the basic ways of keeping records for your business.
I can not begin to mention what the benefits of keeping records for your business can help you actualize. They are so numerous to mention
BENEFITS OF KEEPING RECORDS.
- Knowing your exact profit: Unfortunately, most tailors/fashion designers do not know what their exact profit is at the end of a business transaction. Take for instance, a customer pays for making a certain number of clothes, a seamstress whose sole income is from her business, pockets the money for personal use. There is no proper record for this effect, thereby inhibiting the growth of her business.
- Know how much is spent and received: so for a small scale business, keeping tabs on how much is spent and received can be a pain in the ass, like literally. And this is where keeping a general journal can be of a great help. Every tiny details like N50 thread bought can be easily recorded in the book.
- Planning & Investment purpose: With records, knowing how much you’ve earned and spent in a year can help you decide what capital expenditure is viable to make at a given time. Because most fashion designers and tailors spend more time using their revenue for personal use without appropriate documentation, they find it extremely difficult to invest in capital expenditures like much needed sewing machineries, sewing studios, sewing equipment, etc that could help promote and increase their productivity.
- Coupon/Discount: With the help of recording, you can ascertain when and how to grant coupons or discounts to your valuable customers.
- Source for Funding: It’s no hidden knowledge that one of the major constraint of any striving business is adequate funding and even though there are non-profit , business and entrepreneurship organizations out there that can help funding possible, you will be required to render business plans/ financial reports for your start-up or existing business respectively. Without any basic idea of these, there is a fat 90 percent chance that your application will not considered. Therefore, the benefits of having adequate knowledge of keeping records can not be over emphasized.
- And so on and so forth
So in conclusion, I think you should seriously consider joining TheQEffectz Advanced Class this session, where I’ll be taking you through the journey of managing and keeping records of your sew business. It promises to be mind blowing and revealing.
To learn more about TheQEffectz E-training program, please click here.
Registrations are currently on-going. To register, please visit here.
For more information and enquries, kindly contact us.
By the way, don’t forget that the hustle to win the Brand New Mini Sewing machine is still on-going.
By Monday, 26th February, 2018, we’ll be crowing the winner. So do you really want to win this? then take part by simply visiting here. Don’t forget to leave a comment on the comment box below the post on why you think you deserve to win this.
May the best comment win.
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