The purpose of the keeping Financial Records is
to

ü  provide a management framework for the control of
financial records as a vital resource for public sector financial management,
economic policy development and planning

 

ü  assist records managers and non-records staff,
including accounting and audit personnel, to manage financial records in
support of public accountability and good governance

 

ü  inform policy makers and administrators
associated with the financial management process of the value of, and necessity
for, the effective management of financial records

Keeping accurate and
up-to-date records is vital to the success of any business. The business must realize
that records kept will be one of the most important management tools it
possesses and, therefore, it should be allocated due importance.

Many business owners
invest a lot of time and effort into the running of their business and yet fail
to realize the importance of maintaining good documentation. The business owner
is looking for the maximum return from their investment and the maintaining of
good records is part of that equation. For the business to achieve its success
and profit, it is necessary for the scores to be kept, as it were.

Any record keeping system
should be accurate, reliable, easy to follow, consistent as to the basis used
and be very simple. Good record keeping is vital in regard to meeting the
financial commitments of the business and providing information on which
decisions for the future of the business can be based. While the business
maintains records to monitor and record its normal business activities, it is
also necessary because of obligations under the taxation laws.

Good records will help you do the
following:

Monitor
the progress of your business
Assists you in preparing your financial
statements quickly and accurately.
Identify
sources of your income
Keep
track of your deductible expenses
Prepare
your tax returns
Support
items reported on your tax returns
 Saves a lot
of time and effort
 Provides
valuable information and details for the future sale of your business
where that is required.
Increases the chances of the business operating
and achieving success.

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