FINANCIAL RECORD MAINTENANCE PRACTICES IN BUSINESS ESTABLISHMENT
1.1 Background Of Study In Chapter One
Since man has existed, finance has been the fulcrum on which all other aspects of business depend.
An organization can use finance to fulfill or clear its debts since it is an economic force and a tool for enabling or empowering the economy. Therefore, it can be settled by any method. Finances of an establishment include cash as well as other liquid resources like stock, bonds, contract rights, etc., as well as the credit and loan facilities available to the organization (Adapted from Okofor 2003). A transaction is said to be financed when it is settled through the payment of money as well as other credit facilities like commercial bank loans, bank overdrafts, letter of credits, etc.
It is necessary to maintain transaction records in order to create accurate financial records. Examples of these records in business operations include cash books, receipt books, bank account books, ledger account books, invoice and payment books and booklets, etc.
These documents must be kept on hand at all times in order for management to be effective.
Instituting proper accounting and recording (March 2001) London The goal of record management is to finish accurate and complete information when it’s needed. Record management focuses on achieving economy and efficiency in the creation, maintenance, use, and disposal of an organization’s records as well as in making the information contained therein available to support that organization’s business.
Greater aspects of financial records in business organizations include control over file movement, location, equipment types, classification, indexing, access and supervision methods, follow-up, retention time, etc.
Management of financial records will assist the organization’s future direction. It aids in establishing a foundation for upcoming activity. Data on costs, pay vouchers, financial statements, research findings, etc., may help managers with decision-making in the future by giving them proof from the past.
Financial records maintenance assists in meeting statutory obligations, such as recording all business transactions for the purposes of value added tax (VAT), taxable income, etc. It also serves as proof of transactions, which the law mandates that the organization keep detailed records about specific areas of the business. As a payment record of the organization’s inputs and outputs, thorough records are required. It is important to file written records since they are necessary for a business’s ongoing operations and serve as its memory.
In today’s offices, crucial decisions must be based on the most recent information that is accessible. This means that the risk is too high for the executives, and decisions cannot be made on the basis on assumptions, heresies, etc. Because accurate financial records are the lifeline of every organization, a business institution cannot hope to survive in a field that is highly competitive. The necessity of record management cannot be overstated for informational reasons, hence the researcher made an effort to ascertain the impacts of incomplete financial records in several commercial firms.
1.2 Statement Of The Problem:
Lack of storage facilities, poor financial recordkeeping, carelessness with forms and recordkeeping, and inadequate information collecting, processing, storage, and retrieval policies are all factors.
Every corporation relies on maintaining its financial records, hence this research is being done to look into this crucial but under-researched area of office management. Filling and record keeping are essential to any business. It is accepted as a method of arranging documents in a systematic way to assure their safe custody and retrieval. Lack of adequate record storage facilities, such as office space, poor equipment protection, improper administration of the record paper and files, tapes, diskettes, etc., make it difficult for a company to make quick and effective decisions. establishing a broad policy for measures related to information collection, processing, storage, and retrieval. We must resolve these issues if we want our established business to excel administratively.
3.0 Objective Of The Study
The following are the goals of this study:
• To set the general guidelines for information gathering, processing, storing, and retrieval practices used by commercial entities.
• To ascertain whether business premises provide suitable record-keeping facilities and record-keeping care.
1.4 Questions For Research
• How is the administration of records impacted by a shortage of storage facilities?
• How are records impacted by a lack of a general policy for information gathering, storing, and retrieval measures?
• How might poor recordkeeping compromise records management’s effectiveness?
1.5 Hypothesis For Research
For this work, the aforementioned hypothese were developed.
There is no meaningful connection between general information gathering policies and record keeping.
Ha! The general policy on information gathering and record keeping have a major relationship.
Ho- there is no substantial connection between record management and storage facilities.
Ha! Storage facilities and record management have a strong relationship.
Ho- there is a strong correlation between poor recordkeeping and the hindrance to efficient recordkeeping.
Ha- there is a strong correlation between poor recordkeeping and the hindrance to efficient recordkeeping.
1.6 Importance Of Study
The study will highlight the record management issues. The study is important because once the issues are found, swift eradication will be required.
For the purposes of conducting additional research and making decisions, business establishments, educational institutions, and the government will generally find the study’s findings and the literature helpful.
Last but not least, many commercial enterprises will noticeably improve if the guidelines are implemented.
1.7 The Study’s Scope And Limitations
This kind of academic project can get started and finish without too many obstacles. It is challenging to find several things that would have remained relevant to this work given the limited time available for both classroom work and the project, but limitations notwithstanding, questionnaires and the literature on financial record maintenance practices were combined to gather data from managers, secretaries, accountants, cashiers, and receptionists of the five (5) chosen business establishments in Aba Abia state to make this project.
1.8 Delimitation
The number of businesses in Aba Abia State that can participate in this endeavor is five.
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