Question

Write a Thesis proposal on financial record keeping in small scale business in Ghana

Answer 1

Financial records (formal documents representing the transactions of a business, individual or other organization) maintained by most businesses include a statement of retained earnings and cash flow, income statements and the company's balance sheet and tax returns.

To set strong controls on financial transactions one should have proper finance policies from end to end activity before incorporating the same into the system.

  As we are proposing to small scale business assume that number of transactions involved is less as compared to larger organisations. At the same time investing gon the support functions like finance functions is also in less preference. So we need to define policies in a stringent mode with the connected functional concept.

For small scale business, raw material maintenance is more important due to the highest proportionate of the cost involves in the raw material. Inventory purchasing maintenance issuance needs to be highly defined b following costing strategies (MRN's, SIN's etc).

Recording of each and every transaction is important for better controlling perspective, so frame the policies in such a way that one needs to record maximum data from each transaction which is used as metadata for decision making purpose.

Same transactions need to be used for preparing Profit & Loss and Balance Sheet to review it on a timely basis and to alter the decisions for maintaining continuity of organisational vision & mission.

Regular trend analysis, profitability analysis, customer support analysis, liquidity positions track, inventory days tap, credit period maintenance, and periodic external audit reviews to eliminate internal risk.

We can also use different ERP's to automate the record-keeping and heads up to controlling and analysis part.