Record keeping for small traders: what to write every day

Many traders know how much money they handle but not how much they earn. Records fix that. They help you spot theft, plan stock, detect losses and show lenders or partners that your business is real.

The four things to write daily

1. Sales: what you sold, to whom if it is a credit sale, and how much.
2. Purchases: what you bought for the business and how much it cost.
3. Expenses: transport, data, rent, wages, electricity and other costs.
4. Cash and bank balance: what you have at the end of the day.

A simple layout

Use a hard-cover notebook. Draw columns for the date, description, money in and money out. Keep one page for sales and expenses. Add a separate page for credit given and credit received, so that you know who owes you and whom you owe.

End-of-day routine (10 minutes)

• Count your cash.
• Compare it with what the notebook says it should be.
• Write down any difference and look for the reason.
• Note items that are running low.

End-of-week and end-of-month checks

Add up sales and expenses. Profit is sales minus the cost of goods sold and all expenses. Look at which products sell best and which stay on the shelf. Plan your next purchases accordingly.

Track credit carefully

If you sell on credit, write the customer's name, the date, the amount and the promised payment date. Follow up politely. Unrecorded credit is one of the biggest reasons small shops lose money.

Count your stock

Once a month, count what is on the shelves and compare it with your records. Differences may come from spoilage, errors or theft. Knowing early lets you fix the problem.

Keep receipts and proof

Keep receipts for purchases and a copy of any agreement. They can protect you in a dispute and help with taxes.

Move to a spreadsheet when ready

Once you feel comfortable, copy your records into a spreadsheet to calculate totals automatically. Keep the notebook as a backup.

The result

After a month, you will clearly see your best days, your biggest costs and your true profit. Records turn guesswork into decisions.

Written by the EarnNaija team at EarnNaija Digital Technologies. Tips are general guidance, not financial or legal advice.

This article is general information, not financial or legal advice. Earnings are never guaranteed. See our fees page for the exact costs.