How Important is Administration to Your Business?

In general, companies have problems in recording their business activities, why? The reason is that every company does not make it a habit that even small things in business activities must be administered or recorded properly, neatly, and can provide information.

Many companies ignore the recording of their operational activities, even though there are many impacts that occur if an activity is carried out without proper records. One example is that the company does not record the sales that occur in the sales report, so what is the impact? Obviously the implication is that a company doesn’t know what sales are going on. Usually companies only care about the sales that occur but ignore the records, even though how can the company know the profit / loss or profit even if it is not recorded properly? So what exactly is meant by administration? And what are the advantages? Why should it be done?

In theory, Administration is activities or efforts to help, serve, direct, or organize all activities in achieving a goal. administration is also the activity of a group of people through regular stages and is led effectively and efficiently, by using the means needed to achieve the desired goals. In its implementation, administration is increasingly developing and has tasks which are commonly referred to as functions. In general, it can be said that administration can be carried out if many interested people carry out the administration themselves. This is necessary to regulate implementation in order to achieve the expected goals. The key is that an administration can be carried out properly, if all the people involved cooperate with each other in accordance with their authorities, responsibilities,

In this modern business era, administrative principles are also very helpful in developing the company. In order to move the process of business activities, as an entrepreneur, he must understand the administration system and the organization. If an entrepreneur already understands the administrative system, his business can certainly develop well. Then, what are the principles that must exist in administration?

• There is a group of people who carry out activities within the company that are bound to each other.
• There are goals that are expected to be achieved by the company.
• There is mutual cooperation to carry out an activity within the company

In principle, administration in any company, including trading, service, and manufacturing companies must be carried out properly. So what is the purpose of administration itself?

• To develop a running business because it can be a driving force for activities within the company.
• Can be used as an evaluation material for the company to be able to measure its performance.
• To compile a business development program undertaken.
• So that the company owner can show evidence of business activity carried out in his company.
• As a consideration for company owners to be able to make decisions both in the long and short term.
• As company monitoring in controlling the business carried out within the company.

Another example is that apart from recording operational activities, it is also important if the company keeps its financial records well. Why? Why must financial records be recorded properly?

• This is to determine the condition of the business that is in a state of profit or loss, and can be used as a benchmark or comparison with the periods that continue in the future.
• Become a good citizen by reporting business tax results based on company activities carried out on the balance sheet or income statement.
• Can make financial statements as the basis for determining the feasibility of the business carried out and it can be seen that the business being carried out is healthy or not.
• And the existence of financial records as a basis for decision making by looking at financial developments from time to time that can be used for investment making, for example.

The importance of recording in a business world should also be supported by the knowledge of the company owner. So the conclusion is how important is administration for your business? The answer is very important because administration is also a driving force or it can be said as a function of the company to make decisions, evaluate the business activities being carried out and even know whether the company is healthy or not, and once again it is emphasized that administration can run well if there is a relationship. mutual cooperation with related parties and those who have the authority to carry out the duties and responsibilities.

Source: https://www.jtanzilco.com/blog/detail/724/slug/somes-penting-administrasi-bagi-usaha-anda