5.

1 RECORD KEEPING FOR SMALL BUSINESS

 OBJECTIVES
After completing this training, you will be able to:
• Explain the concept of record keeping and why record keeping is important to a small
business.
• Identify record keeping practices, rules, and tools which are commonly available to a
small business.
• Explain how these record keeping practices, rules, and tools work.
• Identify benefits a small business derives from proper record keeping.
• Explain record keeping basics for a small business.
• Identify software products available for small business record keeping.
 What do you know or want to learn about record keeping?
The term “record keeping” refers to the orderly and disciplined practice of storing business records.
Record keeping is one of your most important responsibilities as a small business owner. The success
of your business depends on creating and maintaining an effective record system, whether your
business is a sole proprietorship, partnership, or corporation.

 Orderly and disciplined practice of storing business records

Record keeping ranges from simple manila folder filing systems to complex on-line electronic
systems. Whether simple or complex, a record keeping system must be easy to use and
provide adequate storage and retrieval of records. Most importantly, the record keeping
system you choose must be suited to your particular business needs. The type, size, and
complexity of your business, as well as your business’ available resources will help to
determine the record keeping system best suited to you and your business.
 Business Operations, Tracking Details
Owning a small business will require you to track a significant amount of information, such
as customers, sales, and inventory. Without a proper record keeping system, you may lose
sight of important business details, leading to problems with serving your customers. If you
do not know details about your customers, such as who your customers are and what your
customers like, your business may not be able to meet buyer demands. You risk
disappointing a customer, maybe losing that customer forever. Staying informed of
customers, their orders, and the inventory to provide for their purchases is challenging.
Without a proper record keeping system, tracking important details of your business may be
impossible.

 Discussion Point #1: Your Record Keeping

- Identify detail records you already keep.

- Identify planning records you already keep.

- Identify legal records you already keep.

- Identify tax records you already keep.

- Think more about your record-keeping.

- Are there records you don’t need to keep?

- Why not? we miss any records that you currently keep?

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- Are there records that need to be added to the list?

- What area of record-keeping needs your attention

 Record Retention
Here is a sample record retention schedule to get you started.

Accounting and Fiscal

Invoices and Receivables    5 years
Checks and Payables     5 years
Auditors Reports     Permanently
Annual Statements   Permanently
Inventory     4 years

Personnel
Payroll      6 years
Contracts    4-5 years
Personnel files   3 years
Insurance Records     5 years
Time Cards     2 years
Retirement Plans      Permanently

Business and Corporate

Contracts      7 years
Copyrights      Permanently
Correspondence    3 years
Leases      6 years
Property Records     Permanently

 Customer Records Business specific

 Sales Records Business specific

 Licenses As required

 Permits As required

 Insurance policies As required

Taxation
Tax Returns      Permanently
Employee Withholding      7 years
Tax bills and statements    Permanently

 Record Keeping Tools

• Simple “paper tools”

• “Tickler” system

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 • Computer systems
• Cloud computing
• Accounting
• File hosting

i. File Folder
A file folder holds loose papers together for organization and protection. File folders can
easily be purchased at office supply stores. Label file folders based on what is inside by
writing directly on the tabs or by writing on adhesive labels that are placed on the tabs.
 
ii. Hanging Folder
Use hanging folders to group several file folders together. For example, a hanging folder
might be labeled “Clients” to contain a number of individual client folders.
 
iii. Cabinet Storage
Hanging folders are often stored in a filing cabinet.
 
iv. Accordion Folder

An accordion folder opens like an accordion on top to reveal compartments for storing
documents. Each compartment can be labeled. Accordion files are designed
Many business owners use a method sometimes called a “tickler” system for remembering
upcoming events, such as:
• Quarterly taxes
• License renewals
• Insurance reviews and renewals
• Upcoming bills
• Call-backs
 Computer Systems
- In addition to paper tools

- Takes less space than paper

- Faster and easier – Internet transmission

- Many businesses and government agencies allow use of Internet

- Learn and grow into computer systems over time

- Be sure to BACK UP files daily

 Cloud Computing
Use the Internet to store, manage, and process data (vs. your own personal computer).

Cloud Computing, Accounting

• Offered by accounting
software companies

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 • No need to buy software upgrades
• No loss of data when computer crashes
• Access data from anywhere
 Cloud Computing, File Hosting
- Share with colleagues
or clients

- Share large files

- No loss of files when

computer crashes

- Accessible from
anywhere

- Free and fee-based

options

 Business Software
- Evaluate business needs

- Many software products available

- Spreadsheets

- Email

- Accounting

 Business Software, Evaluate Business Needs

When choosing software, it is a good idea to determine your particular business needs.
Businesses can be retail or wholesale, service or product-based, a one-person operation or a
large establishment, housed in a commercial space or based at home. Do your research to
make sure you buy software that matches your business type and size. Also, consider factors
such as these when deciding what software will work for your business:
•Point of sale system integration
•Inventory tracking
•Online options
•Manufacturing-based options
•E-commerce-based options
•Industry specialization
•Multiple users
 
Your business software choices will probably fall into the following categories, which are
discussed below:
•Inventory
•Online sales
•Manufacturing
•Specialized
 

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Inventory
Businesses with inventory requirements use software programs that will track inventory
purchases and sales. Most accounting programs have inventory tracking features. Study the
inventory capacity of the software you are considering to see if the capacity will meet your
needs now and in the future.
 
Online Sales
Many businesses sell products online, using either an internet site like eBay or a dedicated
business web site. Some accounting programs can access a business’ online sales
information. Be sure to investigate if the software you are considering will work with your
system for online sales.
 
Manufacturing
If you manufacture a product, investigate the inventory features of your business accounting
software to see if the software will work with your manufacturing processes.
 
Specialized
Some businesses have unique needs. For these cases, a business may require industry-
specific software. Software in this category usually has much more capacity and can be
customized to fit a business’ unique situation. Due to this customization, specialized
software tends to cost considerably

 Business Software, Email

- Communicate with clients, employees, suppliers, vendors, contractors, etc.

- Use “local” computer or webmail

- Keep good records by creating email filing system

 Business Software, Spreadsheets

- Track information such as clients, inventory, sales, employee time sheets, etc.

- Matrix of rows and

columns

- Frequently used for

financial “what-if”
scenarios

 Business Software, Accounting

- Track business financial records such as sales, expenses, inventory, and assets

- Many advantages

o Reduced errors

o Faster

o Inexpensive

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 o Better organization

 Discussion Point #2: Accounting System

Take some time to think about your accounting system.

• Describe your accounting system.

• How might your accounting system be improved? For example, should you add something to
improve payroll processing?

• Write down any thoughts you may have with regard to improving in your accounting system
over the coming year(s).

 Summary
You learned about:

• What record keeping is and how it’s important

• Record keeping basics – practices, rules, and tools

• Which records to keep – tracking, planning, legal, and taxes

• Benefits of record keeping

• Business software available for record keeping

• Business software training

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5.0 ENTREPRENEURSHI

 THE GOALS OF THE CONGREGATION/WORKSHOP

◊ To encourage business ideas to illustrate the importance of distinguishing the person

control

◊ analyse the circumstances surrounding business

◊ to give light to the trader to know her strengths and weaknesses in the context of
commercial organisations around and relating to his business. Example, the
restrictions can hinder business growth

◊ to enable the trader to design and implement solutions to problems//educate

participants about the role of business (Business opportunities) are in the area and to
analyse

◊ to enable Merchant access point to change the type of business or start an entirely new
business based on though power, resources or raw materials, markets, knowledge and
existing competition

◊ to enable the participants to recognize the contribution of gender in development

business and the impact of HIV/AIDS

◊ To enable participants to identify various methods of marketing, market research and

market

◊ To educate and encourage business people about the importance of rust ...

 BUSINESS

 What is a business?

• Any activity that is illegal to sell and buy products or services for profit

 Who is trader?

• Is any man who make any valid sale and purchase of the product or service for
PROFIT development

 Importance things before starting a business

◊ Skills/Knowledge

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 ◊ Technology

◊ Time frames

◊ Income

◊ People

◊ Power Requirements

◊ Place

◊ Competitors

◊ Raw Materials

 ENTREPRENEURSHIP

Entrepreneurship is innovation or discovery or the creation of a concept and putting it in the

actions of productive assets or service delivery.

an entrepreneur is a person who is engaged in business in a way that enables him to sustain
its economic and social life

Architect is the person thinking and discovering new business, establish, promote, tolerate its
problems and benefit from the trade.

 What are qualifications of an entrepreneur;-

1. Always looking for business opportunities.

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2. Patient.

3. You do not honour contracts of work.

4. Seek a better work efficiency by

5.suclifice (without fear).

6Turget 0n goals.

7. Love to find different information.

8. consistent with the plans and monitors the performance of the work.

9.He has a great ability to influence and uses a network of dealers.

10.You are not confident enough.

 BEHAVIOR

• Self-confidence, independence and objectives.

• As successful as pros.

• Readiness to bear losses/average problems as challenges.

• Having the ability to lead, work counselling and barriers.

• and wise.

• Re check his business in the future.

• A glance forward planning.

• He is caring and respect consensus.

 THE SEVEN PRINCIPLES OF THE TRADER

1. See the truth of things.

2. Do business with experiment

3. but minimize the possibility of obtaining damages.

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 4. Focus on goals for your client.

5. Be inventive. Be brave and love your business.

6. Build a good relationship. Note well the present and the future.

 MARKET/MARKETS

WHAT IS THE MARKET?

• Customer or location

WHAT IS MARKETING?

• Total all activities since the business process to meet the needs of the customer

 FOUR WAYS TO IDENTIFY YOUR PRODUCT MARKET

1. Problem/need.

2. Will be something.

3. The ability to buy.

4. Limitations of other brands.

 THREE QUARTERS OF THE MARKET P4

1. PRODUCT refers to the nature, his design, business name (Brand name) and
packaging.

2. PRICE refers to a particular price which goods are sold. Prices are worth financially
which is to compare shape, spending and benefits for the user.

3. PAVILION Is the place where the goods where the goods are stored and sold. The
location can be at your home or apartment rental or specific parts for the market

4. POSTER is a manoeuvre in which a product is aired globally. It is important to

advertise goods or services that you sell to your customers.

 WAYS of advertising at low cost

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 1. Motivation.

2. Ads.

3. To show the action.

4. Talk about your product or service.

5. Mercy team (Charity).

6. Favour competition.

7. Write articles.

 PROVIDING BEST SERVICE FOR YOUR CLIENT

METHODS FOR PERMANENT CLIENTS

Who is the client?

• The customer is a person or any institutions who have a relationship with him in the
business. It is not necessary to have a client who bought a product or service from
your business today.

• Even the man who came to inquire or to visit your business is the client as well.

 Tips to build good relationships with customers

Always greet her client and then ask "can I help you?“

First, learn to be a good listener. Listen and understand.

• If have not understood, ask to meet the need of the customer.

• Be kind to all customers.

• Serve with a smile.

• fulfils they want for an open procedure ..

• . Serve the customers carefully

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• Talk a little bit, show more .

• Sell the benefits, not only products .

• Always try to be patient, because other clients are slow to decide

 UNNECESSARY

a) Do not make unnessesary argument with client

b) Do not confuse a client for too many details.

c) Don’t ask a client beyond what he can use

d) Do not cut the customer desires when he says that the price is too high. Instead, tell
her the benefit he will receive

e) Dont force client to buy but advice about it.

f) Don’t mute the customer is talking, he is the King.

g) avoid, or not eat when you sell, these are actions that can irritate the customer.

 Things That Can Destroy A Relationship With Customers ...

 Angry face.

 The face is introduced to troubled or bored.

 Apathy when it comes to the customer.

 Provide preferential service.

 To demonstrate the absence of skills in the provision of services.

 Service very slow.

 abuse language.

o Sarcastic customer.

 To claim the customer something out of order then the service be provided.

 Not applying to the promise.

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  Things That Can Destroy A Relationship With Customers

• To receive gifts from clients (with the intention of providing preferences).

• Romantic relationships with customers.

• To ignore clients their needs ...

• To chat while customers wait.

• To provide services while drunk.

 Failure to provide comfort to customers when they have to wa Keep

poorly, damaging or losing customer objects.

To rotate customers rather than provide services directly

 Service/customer care

• Customer care is that the direction of seeing a customer that is the blood of
business/service.

• For without the customer no sales are made, So no "business never" ..

• It is said that the trade/service purchased must provide before the customer and not
money!. Customer care is to ensure that the customer is satisfied and enjoy introduced
service ...

 The Meaning Of Customer Satisfaction

‘The Customer Is Satisfied If The Requirements, Wishes And His Expectations Have Been
Met. '

 Plan for a client

• To get all need needs

 Good environment with hospitality

 What are important of client

Client is a person or organisation important for a busness man.

This is due to fact is due to the fact that client.

Is the source of any business, and without him no business shall be conducted

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.

• Is the blood of business. (what the body if you don't

 Types of Customers ...

• Challenge.

• With apprehension.

• Loving Deck.

• Slow in make choice quickly.

• With haste.

• With bugdha.

 Types of Clients

• They love to be praised.

• Hard to understand.

• Angry.

• Customers of silence.

• Customer fanny

 Disadvantages Of Client unfullfills (Mainly Students)

• Bad pictures of your Office in the community.

• Strikes.

• Demonstration

• . Strife. Profanity.

• The Loss Of Jobs.

• The morale of the staff go down.

• Creating hostility.

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 Benefits of customer satisfaction

• When the customer satisfaction becomes easy even to pay higher prices and thus more
profitable.

• Customers who supply the good reputation satisfied commercial and thus bring new
customers.

• Former customers return again.

• Increased customer sales and profit increases also.

• Customers satisfaction increases even though merchant and employees, thereby

enhancing their functionality.

 How To Make Once The Customer Arrives At Your Business

• To listen good to know its needs. If have not understood, ask.

• Show kindness and treat client with a smile.

• Treat the customer carefully.

• To accept the complaint and answer carefully Talk more, pay less.

• Always try to be patient, because other clients are slow to decide.

 Additional Things To Treat A Customer

• Change the greeting as a client as you can.

• Having the right attitude/right.

• Confidence. Consider carefully.

• Show feeling that you would like to help her client.

• Try to notice things he preferred customer even without him to speak.

• Keep the environment will be suitable customer relations and even later.

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  To Deal With Customer Complaints

• Make sure you have understood well complaints are brought to you.

• Request a pleasure even if the mistake is your partner.

• If a customer has a complaint, address envelopes while assuring that all his
complaints will be addressed.

• If you think your ability to solve the problem of the client has reached the end, do not
continue to delay free, participation someone else whom you think may bring
resolution.

• Customers follow through to see if they are satisfied by talking with them, calling
them or by any other communication

 The Properties Of The Provider Who Should ...

• He acknowledges that the customer is the backbone of its Work.

• He was neat and handsome.

• Greeting customers and received properly. Always have a face with a smile.

• Does not seem bored, angry, troubled or face are so sadly.

• He cared about every customer who comes in and providing services without bias.

He was an expert in his work and gives customers the confidence that his service is
guaranteed.

Gives service to the required speed without delay the customer

 The Properties Of The Provider Who Should

• Is an entertainer, he uses language and expresses love for each client.

16
 • Listen and solve customer problems without demanding or receiving a gift or an
additional charge.

• He offers the promise of truth, and that implementing them.

• Does not indicate lust as wanting sexual relations with customers.

Avoiding behaviours that could bring chaos to customers such as drunk at work

• Do not cancel the client speak.

• He had the patience and perseverance to customers.

Make sure the customer to buy something, but you do not influence

 To challenge yourself

1 = All; 2 = A few times; 3 = Often; 4 = All the time

• Bowered and customers with many questions .........

• Provides services for bias ..........

• When I put out shows clearly for customers ..........

• Often ask for customers ' pleasure of fellow errors .........

• Answer the noble even in statements that are offensive ………

• To ignore customers with absurd statements .........

• I don't hide my feelings even if it will offend customers .........

.to enjoy all customers, even those troublemakers...........

.Provides advice and guidance when I need ...

• Handles customer complaints as soon as it is brought………..

 CAPITAL

 What is the capital?

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 1. The amount of money that a businessman has invested in his business for a profit.
(Equity)

• Cash + on resources.

• -Buildings. -Equipment/tools.

• -Raw materials.

• -Loan.

• Willingness/workforce/healthy.

NOTE; - CAPITAL = Liability + Equity

 Types of Business Capital

Types of Business

01Capital

1.Facilities

2.Work

3.Vehicles

4.Buildings

 Moves Around

1. Products

2. Money

3. Sale on credit (debt or Sale on credit (debtors)

 TYPES AND SOURCES OF CAPITAL

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• Capital from the Stock.

 Due to the

 ownership of the land.

 Buildings .

 Accessories.

 Plain property.

 Cash..

 THE WAYS IN WHICH YOU CAN BUILD YOUR OWN CAPITAL

• Work to lay a portion of wage savings.

• Farmer and lay a portion of the crop as reserves.

• Raising animals and to lay additional livestock as a savings.

• To open and operate the account specific time savings.

• Support from parents or relatives.

• Entries by lama in shares is corporate.

• Necessary or game or keep and peshana in the group.

• Deposits are from members. Lottery (although this is not dependent on). To set
gemstones.

 SOURCES OF FOREIGN CAPITAL ENTERPRISE.

• Financial institutions, like banks, Dealers.

• produce credit products, money or both government departments.

• example special Loans for women, youth, President of Fund staff.

19
• Non-government example: PRIDE, Oxfam, Poverty in Africa, SEDA, ADF for
groups, special Youth Fund.

• family, relatives and friends, this is the source widely used in Tanzania Financial
institutions, like banks, Dealers.

• produce credit products, money or both government departments.

• example special Loans for women, youth, President of Fund staff.

• non-government example: PRIDE, Oxfam, Poverty in Africa, SEDA, ADF for

groups, special Youth Fund.

• family, relatives and friends, this is the source widely used in Tanzania.

 Capital borrowing

 The money was borrowed funds + interest

 Loan from wagavi

 Brother

 Friends

 Financial institutions

 Business loan

 USE OF CAPITAL

 Fixed capital

 Land, buildings, equipment

 earn capital expenditures for each business day.

 buy raw materials/products, taxes,

 maintenance, transport

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  LOAN

The loan is when the entrepreneur/businessman can find property/money in the agreement
that the property/money borrowing will be restored with future interest/for Specific
mechanism was agreed between lender and borrower.

 MONEY/PROPERTY

The loan is a cash or assets which can be sold and available funds.

The property or money is borrowing the customer is expected to bring economic reform to
the borrower, the borrower must show necessity/importance of him to be loaned out for
pointing/show use of funds including the interest generated by the loan.

 AGREEMENT

• Consensus is a consensus reached between the two sides, both the borrower and the
lender.

• agreement is built and honestly expected from both sides. So honesty is the
Foundation of reconciliation that bear loan.

 RESTORATION

• The refund is the amount of money/property was agreed between lender and borrower
in which required back to the lender with the amount of interest is acceptable for
special

• Restoration must be accompanied by interest. It is important to understand the

borrower and consider the appropriate time to resume to escape effects and delays in
restoring.

 THE REASONS FOR FAILURE TO REPAY LOANS

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 i) Disappearing reserves at times. In order to be able to afford the lifestyle and to pay
the debt, only savings to credit.

ii) plan to pay. Noted that it is easier to keep paying money if revenue exceeds
expenses. It is important to increase revenue and reduce expenditures when paying the
loan.

iii) renewable Projects Business can prosper due to the demands of customers and
competition. It is important to be able to change the business or to start a business,
reducing the possibility of lack of money to pay for the loan.

 THE BENEFITS OF PAYING ON TIME

 Interest rate declines.

 You avoid discomfort.

 The possibility of getting another.

 THE IMPACT OF NOT PAYING ON TIME

• ignore to pay he worried constantly that he will be arrested and oppression.

• Legal action. Borrower is at risk of legal action by the contract.

• It can be difficult to get another loan.

• If the borrower, loan cannot prop the burden of another loan .

Interest is increasing. Feelings of guilt

• Interest is increasing.

• Feelings of guilt. Borrower

 MAINTENANCE OF RECORDS

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Maintenance of records?

Maintenance of records is the process of keeping business records; to show how money is in
and out.

Its importance;-

Its importance is to enable a trader to monitor the implementation of its business by knowing
the following things:-

- Existing business property

- -financial business cycle

- -total income and expenses

- -operating expenses of the enterprise

- -Profit derived from commercial

- -know if a business is doing well or retreated.

- -an assessment of income tax

Note:-

the law of the land, Income Should Act 1973, is leading

 DETAILS OF THE CASH REGISTER

Money incoming/received increases the amount of money available to businesses. Financial

-paid reduces money the business.

-Money that is sent to the Bank reduces the existing mobile money but increases your bank-
based financing.

-Likewise money is taken from your existing Exchange reduces Bank but adds Mobile-based
money.

-due to documented well stay money will book your consistent with cash in hand at the time.

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-balance end:-in cash's topped the last two residues in two different columns. First there is the
end of the second final balance cash bank.

-how to calculate and understand at least the remainder of the final cash prize. You can do
this by looking at your daily number evening and to compare the amount of money that is in
the container.

 RECORDS OF BUSINESS DEALINGS WITH LOAN

• Sales on credit means:-

• The Act of selling goods without receiving any payment at the same time.

• Purchases on credit means:-

• It is the Act of purchasing goods without paying cash or checks at the same time.

Note:

• Sales or purchases made on credit, are not written in notebook sales transactions
except in notebook mentioned above.

• total sales for month loans involved from the ranks of the notebook LOG volume of
sales on credit if you include and cash purchases for the month behind the cash
register from total monthly purchases involved.

• the total they owe per month involved if you include the sale for cash for the month
you are responsible total sales for the month.

• The rest of the alleged debt or claim is shown in the last column of the notebooks are.

• amount paid to creditors in the last month behind the cash register appears in the
column amount from it to reduce the amount of money in hand or Bank depending on
payment method.

• the amount received from debtors in the past month to appear in the cash column
notebook much Sign thereby increasing the amount of money in hand.

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4:3 CARRYING OUT THE BUSINESS PLAN

NAME OF BUSINESS: …………………………………….

OWNER OF BUSINESS:…………………………………….

DATE:………………………………………………………….

a). BUSINESS DESCRIPTION

1. Description about business

2. Description about Entrepreneurs

3. Basic investment capital fund (expectation of sales, price and profit)

b). MARKET PLAN

1. Description of goods

2. Comparison of goods and service with competitors

c). UCHAMBUZI WA USHINDANI WA BIDHAA

25
 Parameters Business Competitor Competitor Competitor
suggested.
1 2 3

i. Quality of
goods

ii. Price

iii. Time
leading on
goods
supply.

iv. Various
consumptio
n

v. Taste

1-Very good 2- Good 3- Satisfy 4- 5- Bad satisfactory

d). LOCATION

1. Location of business

2. Major customers

3. General requirement of business

26
 Month Quantity of Goods Amount

4. Selling Price

5. Comparison of prices with other competitors

Estimat Price Price of competitors Average

e of estimat Competitor price.i
goods e competitor Competitor Competitor 3
1 2

6. Selling Price

Month Quantity of Goods Amount

27
 7. How to promote/ advertise a business

8. Plan of Market

9. Budget of business promotion

e) PRODUCTION PLAN

1. Production plan

2. Permanent asset

Asset Quantity Distributor Price

28
3. Estimate of production of goods

4 Procedure on purchasing

5 Required raw material

4. Price

7 Human Resource Cost

5. Cost of production

f). FINANCIAL PLAN

• Estimate of total revenue……………………………

• Estimate of total cost……………………

• Estimate of profit and Loss………………………

29
g). Planning Activities (MPANGO WA SHUGHULI)

Activity Days

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18

Business Ideal
1.

2. Preparation of
business plan

3. Loan application

4. Communication
with other supplies

5. Location
preparation

6. Employing labour
force

7. Installation of
equipment/machne
s

8. Purchase of raw
materials

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9. Production

10 Sales

11 Results feedback

h). Discuss the Plan of activity for water project.

Activity Days

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18

1.

2.

3.

4.

5.

6.

7.

8.

9.

10

31
11

4.0 MANAGING FINANCE OF THE WATER SCHEME

4.4 CARRYING OUT A MONITORING SYSTEM OF INCOME AND

EXPENDITURE

 Financial records

32
 • Official documents representing business for individual or other organization.
Financial records kept by most businesses include income statement where found with
cash flows, income statements and the balance of the company and the return of the
tax. Keeping financial records is an important element in a successful business.

• Specify the types of financial records (Trainees to share)

 Importance of financial records

• It keeps good records of various parts.

• It helps to add all costs you claim and reduce your taxation cost.

• It helps to quickly prepare financial account at the end of the year.

• It gives you the information you need to run or develop your business and grow up
quickly.

• Helps to organize tax payment plan example VAT.

 Financial statements

i. Types of financial statements which are:- (To share in the class)

ii. Indicate relationship between financial records and business itself.

 Cash flow{ flow of funds}

• The flow of money is like a chain, large amount of money is similar to move money
in and out of business. The flow of money within the business, shows the property of
the company, make dealing with debt, improving its business, to restore money for
shareholders, to pay the price against the challenges of the future finance.

• Types of cash flows? (class discussion)

• Costing (class discussion)

◊ What is cost?

◊ Type of cost?

◊ Methods that can be used to reduce the cost are?

◊ The importance of recognizing the cost is

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◊ To find different types of cost?

 The importance of cash flows

• Money is also important because then it becomes a charge on the things that make
your business grow, costs like stock or raw materials, workers, taxes and other costs
of operation. Normally, the flow of money wishes to gain profit.

 Cash book

1. Do the following record in the cash book for LVIA for June:-

- June 01, equity financing in cash sh.8, 000 and 38000 in bank.

- June 02, paid tax to cheque of 6000

- June 04, procurement of 4,000 money

- June 05, paid wages in 4500

- June 06, buys for cheque of 6000 on June 07, he bought furniture for the Office and
cheque of 20000

- June 08, he removed the money from the Bank for use of Office 2000

- June 09, mandata left with cheque of 1000

- June 10, Sarungi said legislated pay checks 2500

- June 11, paid Kambaulaya for checks 6500

- June 12, sales check 14000

- June 13, 16,000 financial sales

- June 14, the money was paid into Bank 2500

- June 30, sales finance 1600

2. Farhiya started trading on 1 August 2013 to establish 30,000 money

- 01-08. purchase of goods for money ... 15,000

- 02-08. To pay for goods vehicle …. 1000

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 - 03-08. Sold goods for money ... 13,000

- 06-08. Paid for transportation to sell ... 150

- 10-08. Purchase of currency ... 10,000

- 11-08.Cash sales ... 12,500

- 23-08.Electrical cost.... 500

- 24-08.Profit in cash …. 45

- 12-08. Execution of works in cash …. 1200

- 26-08.Cash sales ... 1000

- 30-08. Payments made for purchases ... 5,000

• Print and prepare a balanced account of the business at the end of the month

3. Record the following in the cash book Madata for June:-

• June 01, Equity financing in hand sh.37, 100.

• June 02, Paid for the maintenance of the fleet of 1,250 vehicles.

• June 03, Paid garage costs (the cost of the car) 720,000

 June 04, 14 Cash sales, 100. June 05, paidJune 06, Paid for the rahaleo sh. 2,450

 June 07, Paid for person without God 14, 250 June 08, office costs 1,500

 June 09, paid for today, 3 150 shillings.

 today sales of money 14, 160.

 June 10, Siwema provide 24,650 shillings

 June 11, He received money from a goods 15, 260

 June 12, Paid for habibashs 24, 630

 June 13, Paid for the cost of 550 shs Office

 June 14, Sales finance 13,750

• salaries shs 5, 100

• June 06, Paid for the rahaleo sh. 2,450

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 • June 07, Paid for person without God 14, 250 June 08, office costs 1,500

• June 09, paid for today, 3 150 shillings.

• today sales of money 14, 160.

• June 10, Siwema provide 24,650 shillings

• June 11, He received money from a goods 15, 260

• June 12, Paid for habibashs 24, 630

• June 13, Paid for the cost of 550 shs Office

• June 14, Sales finance 13,750

 Petty cash

• Little amount of money or small amount of financial prudence in the form of cash
used for expenditures where it is wise to make any payment without cheque, because
of the inconvenience and expense of writing, signing, and then include a check.

Example A: Enter the following activities in the Finance Manual, and a have a series of
analysis for messages, phone, Office, travel expenses, entertainment expenses and other
costs. November 2013.

- He received money from treasurer, a small cash of 88,000

- Repayment of a bus ticket sh. 12,000. message and stamps sh. 2,000 mark

- Office equipment purchase of stationary for 8,000 shillings. The cost Then to 14,000
shillings 2000

- Message for recreational shs 1,500. Office stationary sh. 4500/

- Cost were paid by sh. 2,000 messages. Cost transport 25,000. Entertainment costs
2,500 cost size reached 500

Example B: Complete the gaps in the following table (Class work}

S/N ASSET CAPITAL LIABILITIES

 1 ……..... 8,650 7,050

 2 33,550 ………. 8,850

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  3 27,310 20,960 ……….

 4 51,580 38,150 ………..

 5 ………. 17,620 2,880

 6 36,950 ……… 22,600

 Book of prime entry

 Book signing at first is the first book to the memory. The first book to include cash
book, sales day book etc.

Objectives are :-

 To maintain a log book of the original is very important because it shows debit one
column and anything else if any credits are right from this point.

• The purpose of the statement of income of the overall benefits does not show benefits
of truth because the original entry maintain, so you get easily to correct where an error
had occurred.

• There are two types of login to a newspaper or journal entry

• General newsletter (general journal) is books recording the activities that have no
place in the newspaper. or activities that could not be incorporated in any book of
priority.

 Special journal

Special records are organized to facilitate the process of publishing and printing activities.
They are used for regular activities in the business. For example, in business, companies get
products from retailers, and then sell products to individuals or other businesses.

Special –as following;-

- Marketing Magazine

- Newspaper sales

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 - Return transaction newspaper

- Magazine purchases are returned

 Book of prime entry

• Magazine sales-is recording only credit sales transactions only.

• The return-for sale is a paper record of the goods were returned by customers

• Purchase of a newspaper-you are recording a purchase of credits only from retailers

• Purchase of the return--or back out of the memory products have been restored for
retailers

Note:

7. Marketing Magazine and newspaper all purchases in general are using the document
called invoice.

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