AOS1 establish record keeping strategies

Question 1

why is record keeping important?

Answer 1

• without accurate records, the owner is restricted in their understanding of how the business is performing and where improvements need to be made.
• by law they have to keep records of their financial transactions for at least 5 years, can be electronically kept.

Question 2

source documents

Answer 2

• written documents that provide evidence of a financial transaction
  e.g. EFTPOS receipts