Recordkeeping system
A recordkeeping system is a system which manages, captures and supplies access to records through time. Recordkeeping systems might be either paper-based or electronic. Heads of business units and Managers are required to set up and establish appropriate recordkeeping systems for registration of University records and their business unit to facilitate the collation.
The recordkeeping system is needed to control your business, file your tax returns and prepare your financial statements. The recordkeeping system will assist you to record business transactions accurately and regularly. One of the examples of business transactions are:
- purchase of supplies,
- loan repayments and
- sales to customers.
Moreover, the recordkeeping system will assist you to identify which documents are necessary to keep and how long to keep them[1].
Using of recordkeeping system
The all recordkeeping system should be used in this following areas[2]:
- organize the records in a way that sends back the business processes of the records creator,
- provide finished access to all important records and related metadata,
- routinely capture all records within the range of the business activity it covers,
- supply an audit trail of who has altered a record or viewed and when
- protect the records from unauthorized alteration, transfer or destruction,
- have exactly assigned responsibilities and documented policies and formal methodologies for its management,
- standard function as the primary source of information connected with actions that are documented in the records.
General Guidelines
To record business transactions, you might use also a single or double entry bookkeeping system. The single entry system summarizes expenses and income. That is simple to use but a clerical error might go undetected. The double entry bookkeeping system summarizes expenses and income as well as liability and asset balances. That is a more complex system but will detect or prevent many clerical errors.
In addition to the general recordkeeping guidelines, there are required special requirements for:
- backup withholding,
- listed property,
- tip reporting and
- transportation, gift expense, travel, and entertainment.
Background of the recordkeeping system
From the beginning of the recordkeeping system in July 1971, have taken place two important changes in this system. The first one in January 1975 involved the classification of days of restricted work activity or lost workdays like a day away from work. The second change was in January 1978 represented an effort to reduce the load on the employer and to streamline the reporting system and OSHA recordkeeping. A new recordkeeping form - OSHA (Occupational Safety and Health Administration) made it easier for employees, employer and health officers and safety to identify the most important illness problems and injury[3].
Footnotes
| Recordkeeping system — recommended articles |
| Fidelity guarantee — Accounting manual — Accounting control — Cash voucher — Internal audit — Nominal ledger — Proof of posting — Accounting documents — Accounting process |
References
- Brooks R., (2014)., The eddective teaching of History, Routledge
- Donovan R.J., (1982)., Bulletin, US Government Printing Office
- Nolden F. (1995)., Small Business Tax Workshop, Department of the Treasure, Internal Revenue Service
Author: Jakub Postawa
