Record Keeping
Why businesses keep financial records
Why Businesses Keep Records
Record keeping means writing down all money that comes in and goes out of a business. This helps the owner know if the business is making profit or loss, what to charge for products, how much tax to pay and how the business is doing over time.
Example
Simple Business Records
Thandi's Bead Bracelet Business (1 week):
Income (money in):
Sold 10 bracelets × R25 = R250
Expenses (money out):
Beads: R80
String: R20
Total expenses: R100
Profit = Income - Expenses
= R250 - R100 = R150 profit! ✓
Note
Remember
Keep every receipt! Record every sale and every expense. Without records, you don't know if you're making or losing money. Good records also help when filing tax returns. Even a simple notebook tracking daily sales and costs is better than nothing.
Key Vocabulary
Record keepingWriting down all financial transactions in a business
ReceiptWritten proof of a payment or purchase
ProfitIncome minus expenses (money left over)
LossWhen expenses are more than income
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Record keeping
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