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Learning outcomes
learners will: -
 Understand why businesses have to keep records
 Be aware of the different types of r...
L3 - Understand how to use financial
and physical record keeping systems
 P9 - review financial records for a selected bu...
Why do businesses have to keep records?
 Working in pairs think about the why businesses
have to keep records.
You have 1...
Why do businesses have to keep records?
 Legal requirements
 Management efficiency
 Monitor business performance & prog...
Legal requirements
 Meet legislative and regulatory requirements
including archival, audit and oversight activities
 The...
Management efficiency
 Conduct business in an orderly, efficient &
accountable manner
 Deliver products/services/custome...
Monitor business performance &
progress
 Facilitate the effective performance of activities
Aid decision making
 Look at past, current and future data (relating to
production, sales, customers, suppliers,
employee...
What records should be kept?
Continuing to work in pairs list the different types of
records that should be kept under the...
What records should be kept?
FINANCIAL RECORDS
 Business expenses vehicle use log
 Credit card statement cash register t...
What records should be kept?
OTHER RECORDS
 Purchase orders Licenses
 Employment applications trademark regs &
patents
...
Computer based records
 You can transfer details from paper records onto a
computer, but usually have to keep original.
...
Advantages of keeping accurate
records
 Helps you avoid paying too much tax
 Avoids interest and penalties by paying rig...
Steps to effective record keeping;
1. Set up a system – this can be either paper
based/computerised to keep information to...
Things to consider ….
 Privacy / confidentiality
 Data protection
Intro to resources
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Intro to resources

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An introduction to record keeping

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Intro to resources

  1. 1. Learning outcomes learners will: -  Understand why businesses have to keep records  Be aware of the different types of records  Be aware of the different record formats
  2. 2. L3 - Understand how to use financial and physical record keeping systems  P9 - review financial records for a selected business  P10 - examine physical records for a selected land- based business  P11 - examine the use of financial and physical records in monitoring business performance and progress.  M4 - discuss the use and purpose of physical and financial records, including how they may be used to monitor business performance and progress.
  3. 3. Why do businesses have to keep records?  Working in pairs think about the why businesses have to keep records. You have 10 mins to brainstorm this and then feedback to the class
  4. 4. Why do businesses have to keep records?  Legal requirements  Management efficiency  Monitor business performance & progress  Aid decision making
  5. 5. Legal requirements  Meet legislative and regulatory requirements including archival, audit and oversight activities  The law says that everyone who pays tax must keep the records required to fill in a tax return….this will illustrate what you have earned and spent  VAT registered businesses are legally required certain types of business records
  6. 6. Management efficiency  Conduct business in an orderly, efficient & accountable manner  Deliver products/services/customer care in a consistent and equitable manner  Provide consistency, continuity and productivity in management and administration
  7. 7. Monitor business performance & progress  Facilitate the effective performance of activities
  8. 8. Aid decision making  Look at past, current and future data (relating to production, sales, customers, suppliers, employees……..)
  9. 9. What records should be kept? Continuing to work in pairs list the different types of records that should be kept under the headings; Financial records Physical records You have 10 mins to work on this and then will be required to feedback to the class
  10. 10. What records should be kept? FINANCIAL RECORDS  Business expenses vehicle use log  Credit card statement cash register tapes  Annual tax returns credit card sales receipts  Quarterly tax filings Invoices  Payroll cancelled checks  Inventory check stubs  Sales  Petty cash
  11. 11. What records should be kept? OTHER RECORDS  Purchase orders Licenses  Employment applications trademark regs & patents  Emails and other business communications  Inventory logs  Personnel records  Accident reports  Articles of incorporation  Permits
  12. 12. Computer based records  You can transfer details from paper records onto a computer, but usually have to keep original.  Don’t have to print everything out, but must make sure original can be recovered from a computer Computer packages: Microsoft Word, Excel, Access, Sage
  13. 13. Advantages of keeping accurate records  Helps you avoid paying too much tax  Avoids interest and penalties by paying right amount of tax at the right time  Gives you the info needed to manage your business and help it grow  Makes it easier to get a loan  Helps you budget for tax payments  Helps hmrc to check your tax position accurately  Could help to reduce accountant fees  May support claims to reliefs/capital allowances
  14. 14. Steps to effective record keeping; 1. Set up a system – this can be either paper based/computerised to keep information together 2. Keep records throughout the year – keep all records and update regularly. 3. Keep records for as long as required – (6 years for VAT/5 years from the latest day for filing your self assessment
  15. 15. Things to consider ….  Privacy / confidentiality  Data protection

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