THE BENEFITS OF BUSINESS ADMINISTRATION

Administration is one of the most important part in managing a business / business. Whatever type of business you are and how big or small the business you run will not escape the important role of administration in order to support the smoothness of business and sustaining your business growth.

Although you are a beginner business and business that you live is still relatively small never underestimate the importance of system administration. The practice of applying the administration to your business can start with the simplest administrative system, such as:

  1. Make daily notes / registers on sales
  2. Make a register of every purchase of inventory
  3. Keep notes on purchases
  4. Create and save a memo for each sale of your business.

    Once you get used to doing simple administration on business, then you can try and start learning to make a bookkeeping system, make calculations / reports profit and loss, and prepare a balance sheet. At least There are 4 benefits that you get, from doing administration on business, the benefits are as follows:

  • Knowing how much your business profits. By administering you can better ensure how much profit you earn not by guessing, every record of sales and purchases is clear evidence and data.
  • Avoid the risk of loss. By administering, at least you will not forget and wrong in setting a sales price, if there is no record of purchase and purchase notes you do not save well, sometimes one day you forget how much the purchase price of inventory you have paid, of course you will Difficulty in setting sales prices.
  • Data for business development. If your business has been properly administered, you can easily compare the amount of sales every month or every year, and you can easily measure how much your business growth percentages. Maybe you will start trying to add capital to your business growing.
  • As important data for your investors. Along with the progress of the business that you live, of course you will make additional capital for your business more advanced and growing, maybe you will find investors or business partners. Investors can be individuals or an institution such as banks, cooperatives and other institutions. Whoever your business investor, they need a certain data to find out how big the progress of your business and your business profit, if you have done the administration on the business, of course the data you already have.