Importance of keeping records in managing business.

[btaliat]

Bookkeeping or keeping record is the important part of any business. It is just an act of keeping financial records of businesses for some reasons. This can however be done by the business owners, chartered accountant and any other skilled person.


The following are the reasons for keeping records in a business if not quarterly, then yearly.

Financial strength. Book keeping will determine the financial strength of a company. A business strength can easily be know by merely looking at the records like cash flow or even balance sheet.


For tax. Businesses are taxed based on the records they submitted to the government. This means that that the tax a buinsess owner pays is the function of the records that the owner submits to the government.


For reference. Records are kept for reference. At times, there may be discrepances in any of the records. Reference can easily be made to the records kept to know where the error is.

For future purposes. Record doesn't die even if the owner of the business does. So the records may be kept for future purposes.

 

[sincerem]

Every business is meant to keep a cash flow and the the tool/material that will help them to keep in track of that, is the spreadsheet. If we have spreadsheet for keeping all business record like, sales make daily, weekly, monthly etc. And also keeping in track of expenses, items sold, general expenditures. It will help us to know when the business is making profit or not.

 

[Mataracy]

It is very good to keep record of the activities going on in the business.
Book keeping is a way of keeping financial record of the organization or business.
It use to help the business owner to know may be they are making profit or loss. And it will guide the management to utilize the resources they have very well.

 

[Alexandoy]

This reminds me of the convenience store that my aunt owns. Her son and son's wife handled the operation completely. My aunt complained that she puts in capital every week but the inventory of the store seems to be dwindling. Obviously the operator is embezzling the sales. That can happen if you have no clear recording of the transactions.

 

[Mellorando]

While running a business it is advisable to record day-to-day transactions as well as day-to-day financial activities going on in the business this is because it will enable the owner of the business to keep track off income as well as loss that comes in and out of the business failure to keep record of transactions could complicate the business and bring unreasonable imagination

 

[Sotherefore]

Thanks for the update,it is important for a business organisation to have a record-keeping book to write down their sells of goods and services, this can help to increase the production when the demand is too much or decrease production when the demands is less and to realise the amount of profit made.

 

[Chibson]

Keeping records in business is very important and any serious business that wants to succeed must keep records. keeping records in business helps you to know the financial outflow and inflow in the business. It also helps you with who determine how the business is coping and progressing. Keeping records is very important in business.

 

[Sotherefore]

Keeping record in a business is very important because this is where you you will understand the inflow of goods and services and to shorten the production of goods and services when there is no demand or increase the production of goods when there is high demands.you can also help you to understand losses and profit of a business.