Financial Record Maintenance Practices In Business Establishment
First Chapter
1.1 History Of The Study
Finance is crucial, as old as humanity, and the fulcrum on which every business turns.
Finance is an economic force, a means of economic empowerment or enablement, and the means with which a business can discharge or resolve its obligations. It is therefore any or all methods of habitation. A transaction is said to be financed when it is settled through the payment of money and other credit facilities such as commercial bank loans, bank overdraft, and letter of credits. The finances of an establishment include cash and other liquid resources such as stocks, bonds, contract rights, etc., in addition to the credit and loan facilities available to the organization (adapted from Okofor, 2003).
To maintain accurate financial records, records of transactions must be maintained; such financial records of business establishments include cash books, receipt books, ledger account books, invoice and payment books and booklets, etc.
These documents must be accessible at all times for effective management.
Accounting to record and proper institution March 2001, in London Record management is concerned with achieving economy and efficiency in the creation, maintenance, use, and disposal of an organization’s records and in making the information they contain available in support of the organization’s business; the goal is to provide accurate and complete information when needed.
Financial records in an organization encompass a greater number of facets, such as control of file movement, location, categories of equipment, classification, index, access and supervision procedures, retention period, and so on.
The administration of financial records will guide the organization into the future. It also provides a foundation for future action. Cost information, pay stubs, financial statements, research findings, etc., can aid management in future decision-making by supplying evidence of past events.
There are statutory requirements, such as recording all business transactions for the purpose of value-added tax (VAT), taxable income, etc., that must be met, and the maintenance of financial records aids in meeting these obligations. Financial records also serve as evidence of transactions. As a payment record of the organization’s inputs and outputs, it is necessary to maintain comprehensive records. It is necessary to file written records because files are essential for the continuous operation of a business, which serves as its memory.
In contemporary business operations, crucial decisions must be based on the most recent information available. This is to say that the risks are too large for executives, so decisions must be based on speculation, heresy, etc. Therefore, a business cannot expect to survive in a competitive industry without adequate financial records, which are the lifeblood of any organization. Due to informational reasons, the significance of record management cannot be overstated; therefore, the researcher sought to determine the effects of inadequate financial records in some business establishments.
1.2 Statement Of Problem
• Inadequate care for financial records • Neglect of filing and recordkeeping • Inadequate policy regarding information acquisition, processing, storage, and retrieval.
Financial record maintenance is a vital aspect of any organization, and research is currently being conducted to shed light on this vital but often overlooked aspect of office management. It is recognized as a method of arranging letters and records in an orderly fashion to guarantee safe storage and retrieval. Lack of adequate record storage facilities consisting of office space, inadequate equipment protection, and poor administration of record paper and files, tapes, and diskettes, among others, hinders an organization’s ability to make quick and effective decisions. Determination of general policy regarding the collection, processing, storage, and retrieval of information. In order for our established company to excel administratively, we must discover a solution to these issues.
1.3 Objective Of The Study
The objectives of this research are as follows:
• Determine the general policy regarding the collection, processing, storage, and retrieval of information by commercial enterprises.
• Determine if business establishments have adequate storage facilities for archiving records and if there is adequate care for records.
1.4 RESEARCH QUESTIONS
• How does the deficiency of storage facilities impact record management?
• How does the absence of a general policy for information collection, storage, and retrieval affect the record?
• How can insufficient care for records hinder the efficiency of records management?
1.5 Research Hypothesis
The following hypotheses were developed for this study’s purposes.
There is no significant correlation between generic information gathering policy and record keeping
The relationship between general policy on information acquisition and recordkeeping is significant.
There is no substantial connection between storage facilities and record management.
The relationship between storage facilities and record management is significant.
Ho- there is a significant correlation between improper care of financial records and impediment to efficient records management.
There is a significant correlation between insufficient caring for financial records and impediment to effective records management.
1.6 Significant Of Study
The research will reveal the issues with record management. Immediate eradication will be necessary once the problems are identified, which makes the study significant.
Business establishments, educational institutions, and the government will generally find the findings and literature beneficial for future research and decision-making.
Lastly, if the recommendations are implemented, there will be a significant improvement in the majority of businesses.
1.7 Radius / Restrictions Of The Study
A undertaking of this nature can begin and be completed without any significant obstacles. Due to the limited time available for both classwork and the project, it is difficult to reach out to a number of sources that would have remained relevant to this work. However, the available literature on financial record maintenance practices and questionnaires were combined to collect data from managers, secretaries, accountants, cashiers, and receptionists of the five (5) selected business establishments in Aba Abia state in order to bring this project to completion.
1.8 Delimitation
This activity is restricted to five businesses in the state of Aba Abia.
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