Module 014 Business Records.pdf - ENTREPRENEURSHIP Business...

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ENTREPRENEURSHIPBusiness Records1Course ModuleModule 014 | Business RecordsA business record is a document (hard copy or digital) that records a businessdealing. Business records include meeting minutes, memoranda, employmentcontracts, and accounting source documents.It must be retrievable at a later date so that the business dealings can beaccurately reviewed as required. Since business is dependent upon confidenceand trust, not only must the record be accurate and easily retrieved, theprocesses surrounding its creation and retrieval must be perceived bycustomers and the business community to consistently deliver a full andaccurate record with no gaps or additions.Most business records have specified retention periods based on legalrequirements and / or internal company policies. This is important because inmany countries (including the United States) many documents may berequired by law to be disclosed to government regulatory agencies or to thegeneral public. Likewise, they may be discoverable if the business is sued.Under the business records exception in the Federal Rules of Evidence, certaintypes of business records, particularly those made and kept with regularity,may be considered admissible in court despite containing hearsay.Objectives:1.Understand the importance of keeping a business record.2.Identify the duties and responsibilities of a bookkeeper.Record KeepingRecord keeping is important in a business for it is the only way to inform theentrepreneur how the business is doing. In order to analyze the ‘health’ of yourbusiness you need data! Therefore, a systematic process of gathering data andrecording it should be set up. The following documents should be kept:Production records;Operation records such as labor, farm inputs, tools and equipmentcosts;Cash transactions.Importance of Record Keeping
You might be thinking just how critical is the keeping of records? It isimportant to keep records for the following reasons:Future reference;Keeping track of business transactions;Filing of taxes;Compiling final accounts.In order to fulfil the needs identified above you will need different sets ofrecords. An entrepreneur should maintain records to meet his or her businessrequirements. The following are examples of records that can be maintained:Credit recordsDebtors recordsProduction recordsCash bookPurchases recordsStock recordsAssets recordsProcess of keeping of recordsAn entrepreneur should entrust record keeping to a knowledgeable person.Records are a legal requirement. Records help an entrepreneur keep track ofbusiness transactions, aid in the filing of taxes, compile final accounts and actas a future reference. Record types include Credit records, Debtors records,

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Term
Spring
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Tags
Accounting software, business records

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