Why do I need to keep financial records for my student enterprise?
As a business person, it’s very important that you know exactly where your business stands financially at all times. They main things you need to know at all times are:
- Am I making a profit?
- How much am I selling?
- What are my costs?
- Do I have enough cash?
The only way you will be able to answer these questions is to keep proper financial records.
For the SEAs you are required to enter all financial transactions for your business into a ‘Cash Book’.
What is a Cash Book?
A Cash Book is the record of all the cash that comes into and goes out of your business on a daily basis. A typical Cash Book layout looks something like this:
By adding up all your sales and purchases here regularly you will get a good idea of how your business is progressing.
Start filling in your Cash Book
Now that you understand why you need to keep a Cash Book, use our Cash Book Template to keep track of all monies in and out of your business. You can print this out and include in your Business Report at a later date.
When you’re filling in your Cash book, it’s important to distinguish the type of expense for all expenses listed. For example, as well as entering a total of 10 euro in the ‘Amount’ column for taxi travel, you must also input 10 euro under the ‘Travel’ column.
This way at the end of each period you can see which areas of your business are costing you the most.