It is important to keep track of the money that enters and leaves from your company for many reasons. It helps you identify patterns and manage cash flow more effectively and plan for future growth. It’s also important to keep an eye on your expenses to keep within your budget.
There are a myriad of ways to track your company’s transactions, ranging from accounting software and automated systems to Excel spreadsheets and manual tracking methods. Each method has its advantages and disadvantages, but all of them can help you stay organised and get a clear picture of your company’s financial health.
For instance, if using an online platform for trading shares and stocks using your demat account. A number will be assigned to you and subsequently transferred along the transaction path when each automated step various data storage services is completed. This number is an ID for the transaction that will be recorded in the various systems that are involved in the transaction. This enables all information to be traced back to its source it was processed by multiple systems owned by different companies.
This process of tracing transactions would cause the process to be messy and time consuming, as it would require manually matching invoices with transactions or credit card statements. It could take a lot of time to complete each stage particularly if customers do not include their invoice numbers when they pay. Tracking control is important because it provides top-of-the-line visibility by combining data from multiple mainframes and databases, servers apps, etc.