BUSINESS MANAGEMENT Lecture Notes - Lecture 3: Financial Statement, Bookkeeping, Cash Flow
20 Feb 2022
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Document Summary
Maintaining accurate accounting records is not only required by law, but it is also essential for business survival. Accounting accuracy enables informed decision making, investment planning, and spending cash flow management. Due diligence is essential, and no one wants to receive an unexpected tax bill caused by poor accounting practices. Accounting records are any documents that are associated with the preparation of a company"s financial statements. Certain regulatory agencies require businesses to keep accounting records for a number of years in case they are audited. Accounting records are frequently examined for audits, compliance checks, and other business-related purposes. Transactions, ledgers, trial balances, journals, and financial statements are all examples of accounting records. Accounting records in general: accounting entities and accounting firms are required by rules and laws to keep accounting records for a specific period of time. The majority of accounts can be handled "in-house. " Nonetheless, many businesses hire an accountant to help them with this administrative burden.
