What makes small business owners lack proper record keeping

It is obvious that during this era of evolving changes and daily technology developments, millions of people get too much busy with their daily work, business and family activities.

It is also obvious that a lot of people are trying to come up with various ideas with ultimate goal to establish their own businesses which would give them lots of flexibility and freedom. This is a well rewarding in the sense that those businesses can indeed achieve the ultimate success if they start off with right plan and actions in place and then properly managed, controlled and developed to ensure necessary growth.

The logic described above could be ideal as long as every business owner would clearly know and understand the key factors and elements of what will make their businesses succeed and grow, and one of the most important and crucial parts of this puzzle is record keeping of what business receive and what it spends in order to determine its productivity, efficiency and profitability at the end of the day. But unfortunately, vast majority of small business owners lack realizing the importance of proper record keeping and end up having huge and serious problems with their business and tax authorities as a result of this drawback.

We, as a Receipt Depot, did a lot of work in trying to understand what makes small businesses lack such important piece in the business process. When talking to the owners or managers of small businesses, we realized that the main problem of this problem lies in business them being either unaware or uneducated in a sense that they don’t really think or want to think or simply don’t know why every single document issued by the business or issued to the business is of crucial importance. All they concentrate on is how to bring money into the business and nobody pays
attention to how much business incurs to make those money come. When we asked those people how much money do you think your company makes, most of them were not able to give is a firm answer because they never analyzed it themselves. Furthermore, the sad part was that most of them thought they had good revenues making them think business is doing great but at the same time they kept saying that they had a lot of debts to different parties and they didn’t understand why. This clearly tells us that regardless of how much money comes to the business, if there is no
proper management and control over what business spends, there is no way to know if business is profitable at the end of the day or month and a great chance is that businesses spend more that they receive hence the debts and tax bills can easily collapse the whole business concept.

This is where Receipt Depot is supporting businesses to manage, save and store every business expense and as such be able to see and analyze their spending each and every month.

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