RECORD

KEEPING
FOR A SMALL
BUSINESS
QUOT
E
<< FAILING TO PLAN IS PLANNING TO FAIL >>
Introduction

Record keeping important

for small businesses
• Sole proprietor
• Partnership
• Corporation
Objectives
• Define what is record
keeping in a business;
• Identify the various
forms in business
record keeping;
• Explain the importance
of record keeping in a
business;
• Appreciate the
importance of keeping
records in a business.
Pre - Evaluation
1. Which of the following are reasons
why we need to keep records in
business? Select all that applies.
a. Shows direction
b. Planning
c. Analyze business development
d. Control business capital
2. Record keeping forms are critical to a
successful business, and should be put in
place _________ the business is
launched.
a. after
b. before
c. during
d. all of the above
3. Which of the following is not a
record keeping form?
a. Daily sales record
b. Cashbook
c. Receipt book
d. Income statement
e. None of the above
4. Record keeping is the orderly and
_________ practice of storing
business records.
a. corporate
b. legal
c. financial
d. disciplined
What are Records?
Records refer to the
information created,
received, and maintained
as evidence by an
organization or person, in
pursuance of legal
obligations or in the
transaction of business.
Definition
Record keeping is a systematic process of
compiling similar or related information resulted
from business activities or operations into one
document, and storing it in files/folders (accepted
formats) for the purpose of tracking and assessing
the performance or operations of a business.

Record keeping refers to the orderly

and disciplined practice of storing
business records.
Why do we need to keep business
records?
• To help find and solve problems in a
business
• To control business capital, especially cash
• To show the direction of the business
• To plan for the future
• Records allow business people to oversee
expenditures, costs, and profit.
• Records help to analyze business
development over time.
Various Forms in Business
Record Keeping
• Daily sales record
• Receipt book
• Cashbook
• Income statement
• Cash flow statement
• Balance sheet
Daily Sales Record
Form
It is used to record all
daily sales. It helps to
establish the total sales
per day.
Receipt Book
The receipt book records
money coming in
(income of the business).
Cashbook
It is used to records all cash
transaction of the business
usually after specific
periods of time, that is,
monthly, quarterly, semi-
annually or annually.
A cash book:
• Records sources and uses of cash
• Records who has input what
capital, and when
• Records selling prices at market
• Can help decide how to share
profits
• Can help budget (and thus save)
for the future
Income Statement
It shows the revenue,
expenses, and net income
or loss for a period. This
could be monthly,
quarterly, semi-annually, or
annually.
Cash Flow Statement
It provides an overview of
the cash inflows and
outflows of the business
during a certain period of
time.
Balance Sheet
A statement of the assets,
liabilities, and capital of a
business or other organization
at a particular point in time,
detailing the balance of
income and expenditure over
the preceding period.
Post Test
1. It is important to establish and
your
record keeping system.
a. Justify
b. Certify
c. Maintain
d. Discuss
2. Besides being legally required for
some information, there are
additional reasons for keeping good
records.
a. True
b. False
3. How would you characterized a
simple a simple paper file folder as a
record keeping tool?
a. Simple but worthless particularly for a start
–up business.
b. Good but a computer system is better in all
cases, as long as it is affordable.
c. Good, but is better to start the process of
records keeping with cloud computing.
d. Simple, but fine for a start up business
4. Which of the following are factors
to consider when purchasing
accounting software's? Selects all
that apply
a. Reduced errors
b. Better organization
c. Faster calculation
d. None of the Above
5. Generally, it is best to kept all
records for exactly 8 years?
a. True
b. False
6. A(n) is
commonly used to track information
about clients such as inventory, sales
and employees timecards.
a. Email programs
b. Spreadsheet
c. File hosting system
d. Payroll system
7. For a new business, what timeframe is
appropriate for starting a record system?
a. Now ( or as soon as possible)
b. Within two quarter of the start – up
c. Within the first year
d. Before the first task filing is due.