The role of accounting in Management

2. Record Keeping

Besides being a legal requirement for every company, record keeping also provides a systematic record of all the financial transactions a company makes. Have you already paid a certain invoice? Have you already been paid? How much did you quote in an offer? Does it match the invoice and the payment received? How much cash did you give the driver to buy stationary? Did he return the change? Does the amount your cleaner received match the working hours? Does the material you procured cost the same as last time? Did department A receive 3 or 4 boxes of packaging materials? Does the amount of milk received match the amount of cheese produced or did a considerable amount of milk get stolen on the way? Unless you have the brain of an elephant who supposedly never forgets anything, you will be hard pressed to answer these questions in the hectic work environment that entrepreneurs usually find themselves in. Timely and systematic record keeping relieves you of the stress of having to remember all of these. Well kept records allow you to have all of these numbers at your fingertips.