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What Is Record-Keeping?

Records refer to the information created, received, and maintained as evidence by an organization, in pursuance of legal obligations or in the transaction of business.

Record-keeping is a systematic process of compiling similar or related information resulting from business activities or operations and storing it in files/folders for the purpose of tracking and assessing the performance or operations of a business.

In depth…

It is important to have a functioning record-keeping in place, as it helps to:

  • find and solve problems in a business;
  • control business capital, especially cash;
  • show the direction of the business;
  • plan for the future;
  • oversee expenditures, costs, and profit;
  • analyze business development over time.

Record-keeping tools, such as books and forms, are critical to a successful business, and should be put in place before the business is launched. These tools help to ensure that documents are stored safely and methodologically. They can include daily sales record forms, receipt books, cashbooks, profit and loss statements, cash flow statements, and stock reports. You can find some of the sample forms in the Deutsche Stiftung Weltbevoelkerung’s Entrepreneurship Development Training Manual.

Why Is Saving Important?