BUSINESS DOCUMENTS

LESSON #24

BUSINESS DOCUMENTS

 

These are written documents used as records for running your business. These documents are referred to as book keeping documents and they include; Cash book, Balance sheets, Receipts, Tax invoices, Pro-former invoices just to mention but a few. Technology has eased the burden of keeping bulky documents by creating software’s that keep such records. But it is advisable to have all your documents in hard copy, updating can be done in soft copy.

WHY SHOULD YOU KEEP BUSINESS DOCUMENTS?

The importance of keeping such documents is to:

1.     Have a clear record of how your business is running (knowing your income and expenditure, whether your making profits or losses)

2.     To know how your business is progressing. Most business owners leave such matters to accountants who end up balancing what is not on ground by playing around with the figures.

3.     It’s VERY IMPORTANT for the business owner to know all these documents and to also balance the cash book and balance sheet. This is YOUR business you have to be in control.

4.     To keep tax records, you don’t want URA to shut you down as a tax defaulter.

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