Financial records

Accounting information is essential to the efficient running of a business.

It assists managers in understanding the assets and liabilities a business has, and in monitoring income and expenditure.

Bookkeeping is the recording of monetary transactions in a business.

Most businesses exist to make a profit, by selling goods or providing services.

In order to measure performance and year-end position (cash, inventory, loans etc) businesses prepare final accounts for the end of each accounting year.

Final accounts are based on the business's financial records.

Financial records:

  • Need to be maintained for all commercial transactions undertaken by a business

  • Must contain complete, accurate and valid financial information

Accounting is the process Of recording, analysing and summarising the transactions of a business.