Record Keeping For Organisations
Learning About Record Keeping
Record-keeping can be described as the systematic recording of useful information that is usually focused on a particular purpose. It allows you to keep a detailed, organised record of your progress, achievements, and participation.
We can learn how to keep records and organise our work.
Why Keep Records?
By keeping records you can then reflect on their year’s work and achievements, document skill development, track achievement and goal setting, get recognition, understand financial management, and feel motivated/satisfied by observing and learning.
All businesses must keep written records. These records will allow you to answer the following questions:
- What is the company’s profit?
- What is the value of your business?
- What amount do credit customers owe to the business?
- What amount does the company owe its creditors
- What tax should the company pay?
Many people want to know the financial status of a company. Because you/your organisation may have applied to a loan, bankers might be interested. Your business situation is important to tax collectors, along with your relatives, partners, and anyone else who might have lent you money.
Suppliers will also be interested in information about your company’s finances. If they ship you merchandise that you have not paid for, it is like they are offering credit.
What records should a small business keep?
1. Online Payroll Services: Owners must know how much was paid to them and their employees. To keep everything accurate and in order, this information is sufficient to require a mini-accounting system.
2. Cash Balance: To determine if bills are possible to be paid, the owner must know how much cash they have at any given moment. Without records, entrepreneurs wouldn’t know how much money they have available.
3. Accounts Receivable: Under certain conditions, the owner may extend credit to some customers. Account receivable is the name for money owed. These records are very important. When should you stop using credit? When should you make aggressive efforts in collecting overdue accounts? What time to charge interest?
4. Accounts payable: This is the amount of money that a company owes to other people (such as suppliers).
Two reasons you should pay these bills on time are (1) you might get a cash discount if you pay a bill on-time, and (2) you need to maintain a good reputation with those you do business with. Without accurate records, you could make mistakes.
5. Inventory Records: Even a small retail store, the owner must maintain control over inventory. Which products are you selling? Which products aren’t selling? Are there enough products in stock? While entrepreneurs can retain some of the information, they may not have enough to complete the job required to make a profit.
6. Government Requirements. The owner must file financial statements to tax purposes. The profit earned by a business is what determines the tax due. Even small retail businesses must file certain reports.
7. Financial Statement: The owner of a business should prepare a financial statement detailing the business at least once per year. This is similar to a person having an annual health check-up.
What was the company’s total sales performance? How much did it spend? What were its expenses? What can the owner do next year to improve matters? Entrepreneurs must provide this statement when borrowing money. If they wish to sell their business, financial statements must be provided to potential buyers.
Below is a list of essential skills for record keepers. The percentage of “Record Keeper” resumes that featured these following top skills. Data entry was a skill that 16.1% of record keepers resumes included. Let’s see what skills are required for record-keeper success in the workplace.
A. Information Management Skills
These skills are essential to managing information as your greatest asset. These skills will vary depending on the role you play in the organisation. However, regardless of what your role is, information professionals should have a broad understanding of information management issues beyond their narrow role.
B. Domain Skills
These skills will differ depending on the role you play in your company. Again, we are not suggesting you should have the in-depth knowledge required to work in oil and gas. Different sectors may use different technologies and have different processes. They also operate in different regulatory environments.
Learn more about your industry: Get a workplace procedure manual, training course, or any other resource to help you get to grips with the details of the industry. It is a good idea to search for associations in your sector. Even though they may be in different jurisdictions, the way a specific industry operates is usually very similar.
C. Professional Skills
These skills can be applied to any job, no matter what your title. These skills can make a significant difference in your success in the role you hold, and if they are not present, it will usually result in less effectiveness.
Communicating the business case clearly and confidently to all stakeholders.
D. Information Management Technology Skills
Records managers cannot afford to let IT and the business drive technology projects. They need to be involved. It’s difficult to give meaningful input if they don’t have a basic understanding about the technology.
For more information on keeping records, join one of our online courses. Or request a quote to receive a customised training session.