I've written a "business income statement" for small businesses.

Some of them expand their business while doing business. For example, a small grocery store that started small will gradually become a medium-sized grocery store that can hold more items. A small electronics store will gradually grow. In doing so, you may be able to recoup some of your profits from your business, and you may be able to recoup your capital.

In that case, accounting may be more difficult. Income and expenditure are recorded regularly. The business is running. I think the business is getting bigger. I think they are making profits. But there is only one idea and they can not be expressed in numbers. I did not save money. The problem is that we can not say exactly how much the business will cost. Let me tell you a little bit about accounting for people who are like this.

(1) The first thing to do is to calculate the value of the business. You have to list all the items in the shop. (If the store is too large, it should be the closest listing, even if it is not accurate.)

(2) Once the list is out, calculate the current price of the item. Then the value of the items in the store comes out. (Calculate the market price at the wholesale price, not the retail price you buy. Add the balance of the store to the list under the name "Cash" and the value of the item.

(3) Add debt to your business to that value. (Do not include overdue debts.) Withdraw your business loans from here. Only business debts should be taken into account. Non-business debts (such as loans for the purchase of a non-commercial car) are not included.

(4) When you do this, the current value of a business comes out. For example, let's say the current value of all the items in the store is 50 lakhs. I have 10 lakhs to get from those who bought with debt. Suppose you have a debt of 20 lakhs that you have borrowed from a retail store. So 50 + 10 - 20 = 40 is the current value of the business is 40 lakhs.

(This method only calculates the value of tangible items, not intangible values, such as store reputation.)

(5) Calculating the value of this inventory can be done in a matter of minutes, but the larger the store, the harder it is to calculate. If the shop is small, you can calculate regularly once a week or once a month. If the shop is big, once every 3 months. Once every 6 months Once a year, calculate as convenient as possible. It should be calculated at least once a year.

(6) Suppose it is calculated once a year. At first glance (Levels 1 to 4), the current value of the business is 4 million. One year later, if the value of the property is 60 lakhs + debt of 15 lakhs - the debt of 15 lakhs = 60 lakhs, the current value of the business is 60 lakhs. So from 40 lakhs to 60 lakhs a year later. Even if you do not earn a penny from your business, it is still profitable to expand your business as the value of your business increases. It can be said that it is worth 20 lakhs. It is not profitable to save money. Business growth is great. If you keep your savings in a bank, you will get a small interest rate. It's (usually) more cost-effective to put it back in business. On average, you should be able to make a profit of about 30% of your capital each year. That profit can be used to increase the value of the store as a result of the expansion of the store or to repay the debt. It is also possible that the money will be back in your hands.

(7) In the example of step 6, it is calculated that there is no withdrawal from the business; It is assumed that the money is not added. (Other business expenses, including shop fees, labor costs, and business loans, must be paid from the business's income. You need to make sure.)

Example 1: If you do not have extra money for the business; But if you spend 10 lakhs for food and drink at home, in fact, the annual profit of the business is 20 lakhs plus 10 lakhs = 30 lakhs.

Example 2: No withdrawal from the business; But if you put in another 10 lakhs to buy more goods, the annual profit of the business will be 20 lakhs profit growth - 10 lakhs investment = 10 lakhs (profit).

Example 3: No withdrawal from the business; However, if you add 3 million kyats to buy more products, the annual profit of the business will increase the value of the shop by 20 lakhs - investment of 30 lakhs = 10 lakhs (loss).

Then you need to find out why you are losing. Is the shop expensive? Is it because of labor costs? Is it because the equipment breaks down fast? Is it because profits are low? Is it because of poor sales? We have to find out if there is a thief inside the shop who is stealing the money from the shop. If left unmanaged, they can be left astray and lose the right path.