Question

Write a 2 page report examining the different files an organisation might keep for its accounting documents.

Answer 1

Record keeping system helps the business to work effeciently, to meet legal requirements and strengthen the customer and staff relationships,every business organisation has to maintain records of their financial statements.

Laws that apply to your business will determine how long you should keep or maintain records,if you are maintaining electronic record keeping system you sholud be ready to provide physical copies.

following are the basic records you need to maintain

CASH BOOK OR FINANCIAL ACCOUNTING PROGRAM,FOR RECORDING CASH RECEIPTS AND CASH PAYMENTS

SALES INVOICES,RECEIPT BOOKS,DEBTOR BOOKS,ADDRESS OF DEBTORS FOR PHYSICAL CONFIRMATION DURING AUDIT,CREDIT NOTES FOR GOODS RETURNED AND ALSO RECORD OF GOODS USED BY BUSINESS AND BY THE OWNER PERSONALLY ETC.

PURCHASE INVOICES,PAYMENT BOOKS CREDITOR BOOKS,PAYMENTS MADE TO CREDITORS DEBIT NOTES FOR GOODS RETURNED AND ANY OTHER DOCUMENTS RELATING TO PURCHASES

BANK ACCOUNTS,CHEQUE BOOKS,DEPOSIT RECEIPTS AND BANK STATEMENTS

EMPLOYMENT RECORDS LIKE HOURS OF WORK, OVER TIME,REMUNERATION AND OTHER BENFITS etc

RECORDS AT THE END OF FIINANCIAL YEAR

COMPLETE DETAILS OF STOCK ON HAND

LIST OF DEBTORS AND CREDITORS

RECORDS OF PURCHASE OF CAPITAL ASSETS AND THERE SALES AND GAIN ON THOSE SALES AND PURCHASES,AGREEMENTS WITH SELLERS,COMMISSION PAID ,LEGAL CHARGES,IMPROVEMENT MADE TO AN ASSET

DEPRECIATION RECORDS LIKE PURCHASE OR TAX INVOICE , DEPRECIATION SCHEDULE ETC

RECORDS FOR ALL EXPENSES INCURRED DURING THE YEAR LIKE SALARIES AND WAGES,ELECTRICITY,WATER,TELEPHONE AND INTERNET ETC

AGREEMENTS LIKE SALE AND PURCHASE CONTRACTS , LOAN AGREEMENTS, RENTAL AND LEASE AGREEMENTS, FRANCHISE AGREEMENTS

RECORDS OF DEPOSITS WITH TELEPHONE COMPANIES,ELECTRICITY DEPARTMENTS ETC

SHAREHOLDER, BONDS AND DEBENTURES REGISTERS SHOULD BE MAINTAINED

BALANCE SHEETS

PROFIT AND LOSS ACCOUNT

CASH FLOW STATEMENTS

NOTES TO ACCOUNTS

DIRECTORS REPORT

AUDITOR'S REPORT

ALL STATUTORY RECORDS AND THERE COMPLIANCE DETAILS SHOULD BE MAINTAINED IN ORDER TO AVOID LEGAL ISSUES