Why It Is Important to Keep Good Records and What Could Happen If You Don’t?

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Why it is important to keep good records and what could happen if you don’t? Good record keeping is vital to every business for many different reasons. Records are known as “the memory” of a business therefore, without records this could leave a company oblivious. Having good and current records can benefit you in many ways. It reduces time and attempts on compiling information when preparing for reports and other business obligations and transactions. It can also act as an indispensable foundation of facts and data to detect business losses, in-house deception and thievery. In addition it results in healthier inside power of your business to assist with business arrangements and decision making. A business should always have an account (record) of every major and minor operations that has taken place. For instance guidebooks or electronic records of resources and liabilities, income and expenses, profit and losses, Bank statements and any further relation of transactions associated with the business. Important records such as tickets, invoice, acknowledgments and other related documents issued or received from customers/suppliers schedules and accounting records should always be maintained and correct. Good records will allow you to supervise how your business is working from day to day, and take any action required to correct problems that become obvious. Moreover Records can protect workers and the agency particularly from later claims of negligence. If good records are not kept this will result in major problems for the business. However you will also disadvantage yourself because you will fail to have a precise image of how your business is succeeding or having losses. If good records are not kept this can cause negative reflection on the business or worst your business can be forced to shut down because it has no proof of anything. This

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