How to Track and Control All the Transactions in Your Business
Monitoring all the money coming in and out of your business is crucial for a variety of reasons. It allows you to spot patterns, manage your cash flow, and plan for growth in the future. It’s also important to keep an eye on your expenses to keep within your budget.
There are a myriad of ways to keep track of the transactions of your company, from automated systems and accounting software to Excel spreadsheets or manual tracking methods. Each method has pros and cons, however all of them can help you keep track of your business’s finances and to have a clear view of your company’s financial health.
For instance, if you’re using an online platform for trading stocks and shares with your demat account, a particular number will be assigned and subsequently passed along the transaction path every time an automated step occurs. This number is a Transaction ID that will be recorded in all the systems that comprise the transaction. This allows the information to be traced back to its original source, even if the data has been processed by multiple systems operated by different companies.
The transaction tracing process would cause the process to be messy and time-consuming, as it requires manually matching invoices with payments or credit card statements. It could take a long time to finish each stage particularly if customers fail to include their invoice numbers when making payments. This is why tracking control is essential – it provides top-of-the line observation by stitching together information from various mainframes and databases, servers and applications.