Why you need to record financial transactions

[Carpon]

In personal financing and virtually anything that has to do with money and funds management, records and record keeping is very Important. This is also the same in Personal financing and here are some ways Record keeping comes into play in maintaining a stable Personal finance.

• Records help you trace down how your money is being spent and used. It helps you to know what you are spending on and what you use your funds on and also helps you make amends when necessary.

• It helps you when making budget. Sometimes, you may need to make a budget and not fully remember all the things that should be included. When you keep records, it helps you see what your major needs are and the percentage they take from your income. This could be your previous budgets as well.

• Records also help you note your progress. If you have been overspending, your records will help you know whether you made progress in stopping such a habit.

 

[Etini]

The importance of keeping records in anything that we do cannot be overemphasized. It is so important that it can save you the stress of explaining and re explaining. Nobody takes a business person with no proper records serious. If you need financial assistance for your business from a financial institution, you must be able to show your financial records. Some people just do business in a freestyle manner.

With a good financial record, it is very difficult for your staff to exploit you and steal your money because you would be able to trace where all the funds are. going. It is so important to keep financial records in any business. And there are a plethora of software that one can use to keep records in a business, for example Quicken. I remember when I went to appy for a loan, they asked for the financial records of my farm in the past 2 years.

 

[Suba]

The need for personal financial transaction records, especially for managing finances to achieve integrated and planned financial goals. Financial records will also show whether your expenses are greater than your income each month. Also financial records will make it easier for you to calculate income tax. If you can manage financial records properly, you will easily avoid the risk of lack of funds.
Financial records will also allow you to plan investments.

 

[Yusra3]

Recording financial transactions is important for a number of reasons.

First, it provides a clear record of a business's financial activities, which can be useful for tax purposes, auditing, and tracking the performance of the business.

Second, it can help a business identify trends and patterns in its financial performance, which can be useful for making informed decisions about the business.

Finally, recording financial transactions can help a business ensure that it is in compliance with relevant laws and regulations.

 

[Mika]

You need to track your income and expenses. You need to keep a record of every penny that comes into your pocket and every penny that goes out of your pocket. The process of keeping track of your income and expenses is referred to as cash flow management. Cash flow management skills are very essential to improve your finances. When you have cash flow management skills, you will properly understand your financial condition and modify your life accordingly. let's say you earn $1000, can you pay $ 800 on rent? If your income is $1000 can you maintain a lifestyle that requires at least $1500? When you know how much money you are making, you can modify your life accordingly. The easiest way to keep the track of your income and expenses and ensure that you are not going off the limit is by creating a monthly budget and stayin g within your budget. When you are able to track your income and expenses, you can start saving money.

 

[moonchild]

Recording financial transaction is very important because it helps in keeping you organized and also in control of your finances, without financial records, you won't be able to monitor your inflow and outflow o money, also. when you spend impulsively it will be hard to track your finances and record them.

So, first thing first, you have to control your impulse spending and be able to be in control of your spending, without doing this it will be very hard to control your spending talk less of keeping a financial record.

When recording your financial transaction it is essential if it for business to separate it with your own individual expenses and also vice versa, by recording your financial transactions, you will be able to control how you spend money and also help you achieve your financial goals easily, you can also make use of software to track your savings.

 

[Abigael]

Having a record for your financial transactions is great for sure. It keeps you accountable for your money spending so that you can always make changes for when you are not spending well.

When it comes to stopping overspending, awareness is the first step to resolution. So when you have a record of how you have been overspending, it is easier for you to accept it and start working towards spending less.

Such records also aid your future budgeting. It is through going through your record that you will know what you need to spend on and how much. So you create a budget that is equivalent to how much you actually need.

Record keeping also lets you know when you are spending less and need to increase your income levels. If you notice that everytime you spend you don't get anything to save or invest, it only means that you need to start earning more.