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Business and Personal Growth

by Friday Ojeaburu | Jan 25, 2023 | Business Growth, Personal Growth

This article covers business and personal growth, connected due to the author’s strong interest in both concepts. Business growth is when a business reaches the level of expansion and pursues additional options to earn more profit. It is achievable when business owners and environmental factors determine what happens to a firm’s success.

In addition, businesses experience growth when there is no agent and the principal issues. The industry is expected to grow when its customer base is expanded, revenue increases due to several business models. Also, strategies employed or when different products are produced after researching the market to know the need of consumers.

Personal growth involves both comprehending and pushing oneself to reach their full potential. It can encompass adopting new habits, hobbies, skills, and approaches to accomplish one’s objectives.. It can also mean continually examining who you are becoming and your plans to attain that level.

Growth is not just about gaining market share but also involves engaging in social activities. This means a surviving company’s success relies on how well it serves its wider stakeholders and increases social welfare (Ward, 2020).

Numerous studies have explored business creation, operation, and management (Santamaria, 2018; Birley & Westhead, 1993; Rosa, 1998; Iacobucci & Rosa, 2010). However, this book has identified an F-Ojes Model consisting of three main business and personal growth pillars.

Component of this model tested

Successful businessmen and women have knowingly or unknowingly tested and applied the components of this business and personal model. It has helped them achieve success and expand their businesses.

Amancio Ortega created the Inditex Fashion Group and Zara chain store to fulfil his business and personal ambitions. He implemented this strategy by reinvesting billions of dollars in dividends into real estate and further expanding his business. As a result, both he and his company have thrived, with Zara having branches and offices worldwide. He was even once the wealthiest man in Spain.

Ortega’s leadership style involves actively listening to employees and clients and recognizing them as essential members of his business network. He prioritizes their input and ideas to ensure the business’s success. Ortega kept manufacturing and pricing tasks in-house to prioritise the business’s best interests.

As he listened to employees’ suggestions, he was able to design unique brands. It has helped him integrate their opinions and views into the organization’s success. A network can do this for someone who receives vital information from the immediate environment.

Several scholars have investigated different models for business growth. Still, this book looked at the model by Churchill and Lewis (1987), which is relevant to small and growing businesses as stated in the five stages of company development. According to Lewis and his friend.

The stages are:

Existence

This is related to garnering customers and delivering product or service.

Survival

This means companies have demonstrated that they are workable business entities, with a big question as to whether there is sufficient money for the firm to break even and remain in business.

Success

This has to do with the decision challenges encountered by owners of the business as to whether to exploit the firm’s achievement and expand or keep the firm stable and profitable, providing a base for alternative owner activities.

Take -Off

It means how to make the firm proliferate and finance its growth..

Resource Maturity,

With its size and management advantages, the company can become a strong market force if it keeps its entrepreneurial spirit.

According to Lewis, the model can be helpful for owners during the initial stages of their businesses. As a valuable tool for business owners, the model facilitates task allocation and enables the adjustment of management positions. It also proves beneficial for accountants and consultants in identifying issues and offering solutions to smaller enterprises.

A business or individual who desires business and personal growth should apply the three pillars that make men great. Expanding customer base, increasing revenue, producing more, and going global can help achieve goals.

In line with Premaratne, the success of business enterprises and individuals depends on personal networks (Premaratne, 2001). Still, this book discusses identity and knowledge about current information technology and the knowledge-based economy.

In this book, the author has introduced the F-Ojes Model, which has three main pillars. The first pillar is IDENTITY; the second is represented by the letter K, which stands for KNOWLEDGE. Lastly, the third and final pillar is represented by the letter N, which denotes NETWORK.

The author has listed certain pillars that resemble self-determination assumptions. These pillars relate to the requirements that individuals need to fulfil before achieving psychological growth. Find them below:

Autonomy

This is when the expectation is that individuals control their actions and objectives and feel a sense of ownership.

Competence

This is where the requirement is for people to gain mastery of tasks and learn diverse skills. Believing in your skills increases the likelihood of taking action towards achieving your goals.

Connection

This is where the requirement is for people to relate to other people across the network. When people experience a sense of belonging and attachment to others, they can see self-determination to achieve things.

Today, one cannot do without any of these technology like IoT, Cloud computing, Drone technology and Artificial Intelligent. If combine this technology with F-Ojes Model, it will surely position businesses and individuals.

References

Birley, S. and Westhead, P. (1993). A comparison of new businesses established by “novice” and “habitual” founders in Great Britain. International Small Business Journal, 12, 38-60.

Churchill and Lewis (1987). The Five Stages of Business Growth. Harvard Business Review, 3(3). https://www.researchgate.net/publication/228315536TheFiveStages_ ofSmallBusinessGrowth (Accessed 22 October 2022).

Iacobucci, D. and Rosa, P. (2010). The Growth of business groups by habitual entrepreneurs: The Role of Entrepreneurial Teams. Entrepreneurship Theory & Practice, 34,351-373.

Premaratne, S.P.,(2001). Networks, resources, and small business growth: The experience in Sri Lanka. Journal of small business management, 39(4), pp.363-371.

Rosa, P. (1998) Entrepreneurial processes of business cluster formation and growth by “habitual” entrepreneurs. Entrepreneurship Theory and Practice, 22, 43–62.

Santamaria, S. (2018). Company growth or business growth? Business group formation as an entrepreneurial growth strategy. https://business.uc3m.es /seminarios/ filesem1542013693.pdf (Accessed 2^nd October 2022).

Ward, A.M (2020). Finance: Theory and Practice, Chartered Accountants Ireland

Introduction

Top 35 Source Documents in Accounting are relevant to help accountant in their job. Also, it is a document that serves as proof of transaction that is available in apps that provide such services.

1.Purchase Order

The buyer sends this to the vendor. They will then outline exactly what the order should contain and when it should arrive.

2. Sales Invoice

This is a process for managing account receivables. When the seller gives out goods, they will provide a document containing all relevant sale details.

3. Purchase Invoice

This is made for account payables. The seller will enter this as sales invoice while the buyer will enter it as purchase invoice.

4. Debit Note

This is evidence of reduction in purchases and can be useful to support purchases return journal. Furthermore, in customer books, debit note will reduce how much they owe to the seller.

5. Credit Note

This is evidence of reduced sales and support sales return journal. In addition to supplier’s books, credit note reduces the amount owed by the customer.

6. Cheque

This is a special bank note that represents the cash paid by the customer.

7. Revenue receipt

This is used to record the receipt of cash which is a proof that the payment is made.

8. Cash register receipts

This is a business paper that listed the money coming in from customers.

9. Bank or Credit advice

They are debit or credit bank advice. Bank credit advice is bank documents informing the business of an increase made in the business’s bank account. Unlike bank debit advice that is opposite to bank credit advice.

10. Deposit slips

When one receives cheque or cash from customer, the seller will take it to the bank and present.

11. ATM cards

The production of receipt from ATM machine can serve as evidence that money has been taken from the bank account.

12. Bank statements

This is a summary of financial transactions that occurred at a certain institution during a specific time period. For example, a typical bank statement may show your deposits and withdrawals for a certain month.

13. Bill of exchange

This is an unconditional order in writing, addressed by one person to another, signed by the person giving it. It also require the person to whom it is addressed to pay on demand.

14. Payroll report

This can also refer to the list of employees of a business and the amount of compensation due to each of them.

15. Cancelled Cheque

This is a check that has been paid or cleared by the bank

16. Cheque Stubs

This is the check kept by the payee with information such as the check number, date, and amount.

17. Employee Timecard

This is a method for recording and tracking the amount of an employee’s time spent on each job

18. Board minutes or minutes of meetings

The secretary of the board usually takes minutes during meetings.

19. Goods Dispatched Note (GDN)

This a document of the company that lists the goods sent out to a customer. Without a doubt, the company will keep one record of goods dispatched notes.

20. Goods Issues Note (GIN)

This is a physical record of the movement of goods or materials from the warehouse or store to production department.

21. Stock take Records

This is also called stock counting. It is when you manually check and record all the inventory that your business currently has on hand

22. Stock Record

A Bin Card is a card indicating quantitative records of the receipts, issues and balances etc.

23. Goods Received Note (GRN)

This is source document that shows the goods that a business has received from a supplier.

24. Remittance advice

This source document can confirm the amount paid and shows discrepancies that can easily be investigated.

25. Insurance Endorsement Certificates

This is where one party will add the other party as an “additional insured” on their commercial liability insurance policy.

26. Point of Sales Summaries

This can be used to record a number of sales at a cash register.

27. Memorandum

Memo is a written document businesses use to communicate an announcement, policy changes, price increases or notification to take an action, such as attend a meeting, or change a current production procedure.

28. Computer-generated Receipts

This is the kind of receipts is to be generated by the computer.

29. Lease Agreement or Rental Agreement

Lease contracts are formal documents that identify the lessor, lessee, what’s being leased, whether it’s an asset or a property.

30. Sales Tax Returns

This is the taxpayer’s document of declaration. This will enable the taxpayer to furnish the transaction details during a tax period and deposits his Sales Tax liability.

31. Cash Register Tapes

This allowed one to keep a record of all customer transactions and/or provide them with a receipt.

32. Adjustment Notes

This are issued to customers due to damaged, returned or undelivered goods

33. Employee Pay Advice

This source document that can helped to provide written evidence concerning employee income.

34. Payroll Advice Report

This payroll reports helped small businesses understand payroll costs and summarize payroll data.

35. Evidence of Sale or Disposal of Assets

This is the removal of a long-term asset from the company’s accounting records.

Conclusion

Indeed, all these top 35 source documents in accounting are integrated in several apps that offer such accounting services. Moreover, this App made it possible to have all these source documents in one place to make the accountant job easier and simple.

Kindly add your own source documents to the Top 35 Source Documents in Accounting listed above. This will help us to update our records accordingly.

Watch several videos of how to prepare financial statements from source documents

Prepare Financial Statements from Source Documents Part

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