Horti-Business Management (2+0)

Record keeping as a control

• Keeping accurate and up-to-date records is vital to the success of any business. The business must realise that records kept will be one of the most important management tools it possesses and, therefore, it should be allocated due importance. Many business owners invest a lot of time and effort into the running of their business and yet fail to realise the importance of maintaining good documentation. The business owner is looking for the maximum return from their investment and the maintaining of good records is part of that equation.
  
• For the business to achieve its success and profit, it is necessary for the scores to be kept, as it were. Keeping records is really like score keeping - if you went to a football game where no one kept the score, you would have to ask “what was the point of that whole exercise?” By keeping the score you are able to work out who is winning and whether you are winning at all. Many people do not know the "current score" of their own business because they have failed to realise the importance of keeping good and adequate records. Any record keeping system should be accurate, reliable, easy to follow, consistent as to the basis used and be very simple. Good record keeping is vital in regards to meeting the financial commitments of the business and providing information on which decisions for the future of the business can be based. While the business maintains records to monitor and record its normal business activities, it is also necessary because of obligations under the taxation laws.