What Record Keeping and Financial Control Will Do For You and Your Business

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“Look, the bank has asked me to bring this accounts and reports. The ministry also demanded for it. Please prepare it anyhow. How much will it cost me?” That was Victor Orilonishe (Not his real name please) talking with his financial consultant.

“But sir…” the Financial Consultant began: “You have not got any basic records from which we can prepare this reports and accounts. What about your bank statements of account? Do you have your receipts and invoices which we can use? How about your payment vouchers?” the Financial Consultant demanded

“Look here my friend, if you do not want to do it for me, just say so! I don’t have all these documents you are demanding for. Am I not the owner of my business? Look here, I know of many accountants who will do it without asking any question. How much will I pay you for the job?”

This has been my experiences as I discussed with small and medium business owners on why and how they should keep their financial and business records.

Why Business Owners Do Not Think They Need to Take Control of Their Finance…

Most business owners cannot see the rationale behind the appeal to take charge of their financial transactions. After-all, they have to make the money first, they usually reasoned.

Well… Here are some reasons why you as an average business owner may not take your financial control very seriously:

1.The money is small initially. For example, if all your capital is N5,000, how can you be thinking of instituting financial control? Control of what? You may ask yourself.
2.Because the money is small, you think that there is nothing to control. You should realize that taking control of your money and finance is a habit that you need to develop and perfected even while you are controlling small amount. The advantage is that if you make mistake at this level, it will not be devastating. By the time the big money start coming, you would have perfected your financial controlling skills to deal with the bigger challenges.
3.It is part of human habits to hide under ignorance, so that when you fail, you can blame it on lack of knowledge. Taking control of your finance will expose to you early enough your areas of indiscipline. Until you correct it, the system will keep showing you that you lack self discipline. Most people do not want this.
4.Looking at the Biblical declaration that you will multiply and replenish the earth (Gen. 1:26-28), this takes a process to materialize. I will demonstrate this later in this write up.
5.Because the economy is under-developed. People deliberately refuse to keep records and control their finances so that they can cheat their employers, family, church and even themselves. It is amazing!
6.The near absence of credible competition in most areas of business makes the need to keep proper record unnecessary. It is only the ‘big businesses’ that can afford elaborate record keeping that take their time to do so. Whereas, it is not supposed to be so. It is the small and medium business owners that actually need the financial control. The good news is that there are very simple ways and inexpensive ways of taking proper control of your business. I will explain more on this simple and inexpensive ways in my subsequent articles.

Now, Let us look at the practicality of this declaration of your multiplication. If you start your business with just N1 on the 1st day (it could be other periods like week, months, years, decades etc), if you multiply your resources by just 2, Do you know that by the 10th day, you will have a cumulative amount of N1,023. By the fifteenth day, your money would have increased to N32,767. By the 20th day, your money would have hit the N1 million marks. By the 25th day, you are a proud owner of over N33 million. Wait! It hasn’t finished…

By 27th day, you are in a position to control over N134 million while by the 30th day, your money would have hit the N1 billion marks. Whao! No wonder they say that the rich will continue to get richer while the poor will continue to get poorer.

Here is the schedule of this concept.

Days

Daily Amount

Cumulative

1

1

1

2

2

3

3

4

7

4

8

15

5

16

31

6

32

63

7

64

127

8

128

255

9

256

511

10

512

1,023

11

1,024

2,047

12

2,048

4,095

13

4,096

8,191

14

8,192

16,383

15

16,384

32,767

16

32,768

65,535

17

65,536

131,071

18

131,072

262,143

19

262,144

524,287

20

524,288

1,048,575

21

1,048,576

2,097,151

22

2,097,152

4,194,303

23

4,194,304

8,388,607

24

8,388,608

16,777,215

25

16,777,216

33,554,431

26

33,554,432

67,108,863

27

67,108,864

134,217,727

28

134,217,728

268,435,455

29

268,435,456

536,870,911

30

536,870,912

1,073,741,823

31

1,073,741,824

2,147,483,647

One thing is certain; it is the stupid poor that remains poor. If you get the secret of what I am sharing with you here, no matter what level of poverty you find yourself, you can still be very rich.

Do you know one thing? This result is the barest minimum that God has ordained for us. Look at it this way… Any figure multiplied by one remains the same. So the minimum multiplication is 2. Anyone who can recognize this concept and work with it will be rich beyond its widest imagination.

But the sad news is that this multiplication will not happen by magic. It is a process. You must discover it, learn it and follow it. Most people are not ready to follow the process.

When you fail to control your money:

  • If you fail to control money, money will control you.
  • To develop the habit of financial control takes time and effort
  • If you fail to develop the habit of controlling your money, once it is out of your control, then it is on its way out.

For example, the process you use in controlling your money in the first 15 days of the above schedule may not require any special skill. But by the time you are hitting millions and hundred of millions, the same process you were using before will no more be adequate. By that time, you may not have the time and patience to sit down and learn the process. That is the reason why the time to learn the process is NOW!

Another reason why you should take full control of your finance is that during the first 18 days, nobody will notice you. You are obscured from the prying eyes of the financial predators and sharks. But as soon as you begin to get into the realms of millions, you become a target for financial vampires, predators and sharks. Guess what? Their sole objective is to divorce you and your money. You’ve got to prepare for them.

How can you do this? Well, let me explain that in my next article. Until then, I say God bless you.


pastor-gbola

 James Olu Gbolagoke is a Chartered Accountant, a Financial Consultant, a Pension Practitioner, an Investment Adviser, a Pastor and an Entrepreneur. He is the Executive Director of Gbola Empower Consult and BizExpert Consult. He consults, teaches, trains and develops small business owners and their staff. He can be reached on gbolaconsult@gmail.com  234-802-311-7940, 234-807-059-0705.

About Gbeminiyi Oluwabusola

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Gbeminiyi Oluwabusola is a web developer, internet/information marketer, team leader and an entrepreneur. He is the MD/CEO of MeritChoice Limited. He is currently running an internet marketing programme on How Anyone Can Be Making ₦300k+ Monthly Online. Click here to learn more.