• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Write a concise report detailing the purpose and value of keeping accurate financial records.

Extracts from this document...

Introduction

VCE Business Assignment - Task 1A Write a concise report detailing the purpose and value of keeping accurate financial records. ac-count-ing. The principles and methods involved in keeping a financial record of business transactions and in preparing statements concerning the assets, liabilities and operating results of a business. The purposes of accounts are there not just for the organisations benefit but for the stakeholders as well. Legal requirements also play a major part in the maintenance of companies financial records. The government and its subsidiaries are the main people who have an interest in the preservation of the company's accounts. Most 'Taxes' are checked up on annually. Customs and Excise are responsible for the V.A.T. (Value Added Tax - Set at 17.5% in the U.K) collecting. ALL companies MUST keep V.A.T. records and accounts. It is extremely illegitimate if a company does not pay its V.A.T. Corporation Tax (took from a companies profits) ...read more.

Middle

The same applies to a partnership, i.e. an organisation with Two to Twenty People owning the business. Anymore than 20 people who contribute capital to an organisation are considered as a different 'type' of business. They can be divided into two different types of organisations. The Private (Ltds) and Public (PLCs) Limited companies must keep and publish accurate financial records. The main reason that they publish the records is for stake holders and share holders so that they can see weither their investment is safe in the company and also to see if the company in worthwhile investing within in the first place. Organisations must also keep accounts to ensure that business activities are recorded accurately to ensure that fraud and dishonesty, money laundering and criminal market misconduct such as insider dealing is not taking place. ...read more.

Conclusion

This also joins into weither a business is meeting its objectives or not. Companies can tell by their annual revenue if they have or have not met their objectives. Businesses monitor their objectives carefully and if they think someone is not up to 'meeting the target' standard, then they will not hesitate to remove the person from their workforce. Decisively, organisations need to maintain their financial records to keep their stakeholders informed of their financial position. They also need to determine weither or not the business will be able to meet its economic commitments as they fall due, i.e. the company being able to pay their bills, wages, taxes, etc. In conclusion to all of this, companies will only be able to maintain their invaluable accounts if they have a continually updated supply of invoices, orders, receipts, credit notes, paying in slips, cheques, petty cash vouchers and pay and wage slips. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our University Degree Finance section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related University Degree Finance essays

  1. Managing Financial Principles & Techniques

    If, for example, because of taxation considerations, they would rather make a capital profit (which will only be taxed when shares are sold) than receive current income, then finance through retained earnings would be preferred to other methods. A company must restrict its self-financing through retained profits because shareholders should

  2. This group assignment of Financial Management will assess the positions financial performances for six ...

    In 2008, Kwantas had 37,500 hectares of plantation land, out of which 15,800 hectares had been planted. As part of its expansion plan, Kwantas is constantly looking at opportunities to expand its plantation landbank to increase the supply of fruits for the production of crude palm oil (CPO).

  1. Strategic & Decision Making of Sony Corporation

    From the IHR strategy that is established by the organizations management, a blueprint can be developed for building the desired picture by designing global programs and harmonizing and aligning current policies, plans, and programs in each country to the IHR strategy.

  2. Lourdesville Nursing Home

    For all other further transportation needs and journeys, the staff will drive the mini bus. Suppliers Homecare Medical Suppliers at 094 9381370 (Co. Mayo) brochure available on the net Order Hotline possibility at 1890 390 590 No Minimum Order Regular Special Offers Dedicated Customer Care Contact Delivery Nationwide Incontinence, wipes/gloves,

  1. FDM Assignment - Dairy Crest

    However, here, it is evident from the company's cash flow statement that it has acquired new businesses for 293.3m. The increase is primarily caused by these two acquisitions in the accounting period 2006-07. The same has caused the increase in the Intangible Assets in the form of assembled workforce, license agreements, and contact with the customers etc.

  2. Define how UK law has evolved to curb the practice of Insider Dealing.

    that of disclosing information to another (CJA 1993 Section 52(2)(b)) Dignam and Lowry state, "Every country in the world with a major stock exchange has made this practice illegal because of its potential to destroy public confidence in the stock exchange."4 It has been expressly illegal, punishable by fine or

  1. The Search for Ralative Value in Bonds.

    Barbells and bullets are among the most commonly used vehicles. Specifically, a flattening yield curve tends to favor barbells while a steepening yield curve tends to favor bullets. Most portfolio managers have more latitude to express shaping views than directional views, but they are still constrained and, even then, they

  2. Final business report - Its purpose is to inform those in Finance about their ...

    Limitations These limitations will only deal with the area of financial planning: A. Three major firms that deal with financial planning will be analyzed along with the key elements of each. B. A financial planners job criteria will be discussed C.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work