Proper recordkeeping is crucial for several reasons:
Compliance: Businesses must comply with various regulations and laws, and accurate records ensure adherence to these requirements. Financial Management: Detailed records help in managing finances more effectively, tracking income, expenses, and profitability. Taxation: Accurate records are essential for preparing tax returns and can help avoid penalties during audits. Decision Making: Comprehensive records provide valuable insights for strategic planning and decision-making. Historical Reference: Records serve as a historical reference to review past performances and make future projections.