To have an understanding of cash flow and what money is being spent on || As well as legally for tax purposes the 'tax man' needs to see records to know how much tax they want you to give
Everything money has been spent on should be recorded
4 of 10
Identifying
Must capture the financial data
5 of 10
Measuring
Decide if you are calculating money or sales
6 of 10
What to ensure?
Reliable - information is clear and legible & free from errors || Comparable with other firms || Relevant, data needs a purpose
7 of 10
How can records help?
Aid decision making || Aid credit control || Illustrates financial position || Inland revenue need to know financial performance of firm
8 of 10
Consequences of inaccurate records?
Sweet Papaya - won't know how much stock to buy, could buy too much which would lead to waste and money wasted - or not enough and customer confidence will lower and then they wont have enough customers to continue
9 of 10
Consequences of inaccurate records?
Legally could be prosecuted || Prevent fraud, lots of people working there money could go missing
Comments
No comments have yet been made