Business! A place where you buy and sell items/services to make a profit. So, to know your gain, you must know “how much” and “where” you’ve spent. But, it’s not just for this reason you need to track your business purchases made. There are other advantages too.
By Tracking Business Purchases, you can also
You may be spending on something that is not giving you enough returns or is simply getting wasted.
Eg: Imagine you’re purchasing 100 liters of milk out of which 10 goes unsold every day. You can easily identify this loss when you’re tracking purchases and sales. Trust me, doing this saves you a lot!
There might be people who are misleading you.
Eg: Imagine a vendor from whom you purchased 5 bags of cement charges you for 7 instead, during settlement time! If you’re tracking purchases made, then you have the proof to prove them wrong, else you’ll lose money to them.
In business, it’s quite easy to go out of your spending limits.
Eg: Imagine that you spent a lot on inventory that you think would make profits and end up not having money to pay your rent. Freaks you out, isn’t it?
It’s pretty easy to forget “how much” you’ve spent on what.
Eg: Imagine you have spent on re-stocking cement bags in your business and sometime later you have no clue where you’ve spent your money on. This happens to most of us!
When you do not know what’s happening today, you can’t plan what must happen tomorrow!
Eg: Imagine you invested in 4 items, and only 2 of them are selling well while others are not. Such information is necessary to make upcoming investment decisions else you’ll end up making useless investments.
Unfortunately, growing businesses will find it very difficult to track business purchases made by paper or Excel. Spreadsheets and a pile of papers are not only painful but also time-consuming.
Did You Know – 80% of businesses make yearly purchase mistakes that can be easily prevented by using Business Accounting App like Vyapar App.
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