Accounting records are key sources of information  and evidence used to prepare, verify and/or audit the financial statement.

some basic purpose of accounting records are:

Journals

Ledgers

Bank statement

contact & agreement

verification statements

invoices & voucher etc.

some basic purpose of accounting records are:

Journals

Ledgers

invoices and voucher etc.

Journals

Ledgers

Bank statement

contact & agreement

verification statements

The purpose of accounting is to accumulate and report on financial information about the performance, financial position, and cash flows of a business. This information is then used to reach decisions about how to manage the business, or invest in it, or lend money to it. This information is accumulated in accounting records with accounting transactions, which are recorded either through such standardized business transactions as customer invoicing or supplier invoices, or through more specialized transactions, known as journal entries.

Once this financial information has been stored in the accounting records, it is usually compiled into financial statements, which include the following documents:

• Income statement

• Balance sheet

• Statement of cash flows

• Statement of retained earnings

• Disclosures that accompany the financial statements

When it comes to keeping good records, we all seem to acknowledge that things could be done better. But why is keeping good records important? Here are some reasons why it’s so important.

1. Enables you to manage your business and make it grow

2. Helps to stay organized when dealing with customers and suppliers

3. Makes it easy to prepare management accounts

4. Makes it possible to find important information and documents quickly

5. Makes it easier to get a bank loan or overdraft