It is February.
Have you stuck with your new year’s resolutions thus far? We have. Remember #THE YEAR OF INTECO where Inteco discussed creating a system as part of the first quarter’s resolution? Yes? I am proud to say we can safely check that out of our To-Do list.
It was personally really challenging because I was excel illiterate. Apart from basic addition and subtraction I had no knowledge of how excel works. There were a lot of lessons learned and as usual I shall share them with you.
I like to read. Since I started Inteco so early in my life I am honest enough to say at times I fly blind. I do not have the experience or the academic backing to do certain things. With that said it does not mean I sit on my hands and wait for the knowledge to fall down from heaven. I read. I read to make educated decisions. In this case it was no different. I read to find out what accounting entails. Accounting basically is the process of record keeping. That is where it all starts. Therefore, before making your system you must have a way of recording every single transaction the business has done. All you need is this:
Date, Description, In ,Out
The next step is to understand the nature of your transactions. Do you buy your supplies before or after using them? Do you use all your suppliers in the same time period you bought them i.e same month? An understanding of this helps you categorize your expenses and how to record them.
I won’t lie the accounting books gave me a slight migraine. I pushed the books aside and asked myself what would I like this system to help me with? I won’t delve into the technicalities of creating formulas on excel simply because we all have different needs in our different businesses. It is important for you to understand what these needs are.
I’m a pen to paper type of girl. My ideas materialize better when I write or draw them. Thus, I drew my system. I created a logic flow chart. I needed two aspects of the business monitored: the inventory and cash. It is more complex than this but, that was the foundation of it. If you feel excel is just not for you. You would prefer to use accounting programs go right ahead. However, you must have a basic understanding of what you require from that program. Inteco’s system is far from where I would like to be but for now it is sufficient for our needs.
Until next time.