Question

Why are financial records important? How does keeping organized financial records contribute to successful money management?

Answer 1

Answer: Financial records are important because financial records can be source documents for accounting with sale vouchers, invoices, etc. Keeping financial records organized can contribute to successful money management because all the details will be correct, organized, and accounted for.

Answer 2

Supposing that financial records refer to source documents for accounting such as sales vouchers, invoices and such, it is important to the organisation of accounting data and helps accountants make detailed and correct accounts, which can then be translated into financial statements such as balance sheets and income statements which help managers and other stakeholders to make crucial financial and business decisions.