Records and Language

Keep track of your Business with good Records
It is impossible to keep track of how the business is running unless there are adequate business records being kept. By law, certain records must be kept by every business in order to enable the ascertaining of profits for taxation purposes etc.

Many small businesses feel that the only objective of keeping records is to meet the minimum legal requirements. This is wrong. Most small businesses still end up making good profits without good records. However what they don't realise is that they could be missing out on many opportunities for higher profits, by not being kept "fully in the picture" due to poor records.

In today's competitive marketplace, you can't afford to run a profitable business without accurate and complete business records. Well kept records are a management tool that assists in losses, managing cash etc. Accurate records are essential when putting together information for a loan application or for the sale of the business.

If you are unsure of how to go about putting together proper recordkeeping systems for your business talk to your accountant right at the beginning when setting up your business. This will guarantee that the infomation your records produce are correct right from the start. It cannot be emphasised enough that good records are critical to your business success.

What Accounting Records are required?
The accounting records that are required in any business are the journals (both purchase and sales journals), the Cash Receipts Book and Cash Payments Book (cash book) General Journal, Debtor's Ledger, Creditor's Ledger and General Ledger.

These are the minimum accounting records that will enable your small business to measure its financial operation as well as comply with the requirements of the law: