management of business records

BY MEwww.Reallygreatsite.com
MAGAZINE
@Reallygreatsite
RECORD
MANAGEMENT
PROCESS IN
BUSINESS
ORGANIZATION

WHAT IS ACCOUNTING
RECORD?

WHAT IS FISCAL
RECORDS?

WHAT IS FISCAL
VALUE?

MANAGEMENT
OF BUSINESS RECORDS
MAGAZINE 2022

Alhamdulillah, we as a whole team would like to thank
Allah as we finally finished this Management Record
assignment that has been given to us. Honestly, there
were a few obstacles that came up in the progress, but
thankfully we managed to overcome it and complete this
task on time by putting so many efforts into it.

Besides that, we would like to express our gratitude to our
Management Record lecturer which is Sir Mohd Abdul
Hafiz bin Md Radzi that has guided us during the process
of completing this magazine.

Not to forget, a big thanks to each of our groupmates
whom have been contributing a lot in this task and not
giving up until the last page. Everyone was responsible of
this task and eager to accomplish this task as soon as
possible.

TABLE OF CONTENTS Record management process in
business organization



What is accounting records?



What is fiscal records?



What is fiscal value?



Type of accounting records?



Benefits of accounting records?



Weaknesses of accounting
records?



How company organize their
records?



Challenges company need to
face

NURUL HUDA AZMI NORHAKIM AZRISHAH
ID Number: 2021474422 ID Number: 2021813158

DOB: 26 JUNE DOB: 17 JUNE
Email Address: [email protected] Email Address: [email protected]

"Grow with the flow" "Lion doesn't compare himself with humans"

EDITOR'S

BACKGROUND

MUHAMMAD AIMAN IZZUDDIN AZHAR MUHAMMAD HAFIZUDDIN ABU BAKAR
ID Number: 2021862298 ID Number: 2021620406
DOB: 18 FEBRUARY DOB: 15 JULY

Email Address: [email protected] Email Address: [email protected]
"Believe you can and you are halfway there" “Do or do not. There is no try.” – Yoda



EDITION #123 - JUNE 2022

MAGAZINE BY ME

RECORD
MANAGEMENT

PROCESS IN

BUSINESS
ORGANIZATION

BY NURUL HUDA

1. Capture
2. Registration
3. Classification
4.Access and security

classification
5.Identification of disposition

status
6. Storage
7.Use and tracking
8.Implementation of

disposition

The process specifies that
records should be created and
kept. Includes that creation of

records and accepted by
organizations such as

correspondence and scraps.
Electronic records systems
capture documents in a more

deliberate process.

The purpose is to provide evidence that
records have been created or captured in

the records system. The registration
specifies the following metadata as a
minimum. Unique identifier assigned

from the system such as:
document name or title
text description or abstract
date of creation
date and time of communication and
receipt
author (with his/her affiliation)
sender (with his/her affiliation)

3. CLASSIFICATION 4. ACCESS AND SECURITY
CLASSIFICATION
An analysis for the purpose of
developing a business activity Reasonable security and access
classification. Classification system depends on the nature and size of
provide an organization with a tool to: the organization. Reasonable
•Organize, describe and links its record security can be described as the
•Link and share interdisciplinary level of security needed to protect
record, either internally or externally to information from every access
organization
•Provide improved access, retrieval
and dissemination of its record as
appropriate

By Me Magazine

5.IDENTIFICATION OF
DISPOSITION STATUS

The identification of
disposition status usually

can be done before
records created, before
records keeping system

are designed, before
disposal and when

required.

6.STORAGE

Three basics factors for
selecting storage supplies
and facilities are as
follows:

Need for storage
supplies and
equipment
Facility consideration
The cost realized

7.USE AND TRACKING

MANAGING THE USE OF RECORDS
ENCOMPASSES

This can identify the access and
security status of records and can
access the right for people external

to organization.

TRACKING OF RECORDS

Use in the record system as a
security measure for the

organization. It ensure that only the
user with appropriate permissions

performs records tasks.

8.IOMFPDLIESMPEONSTITAITONION

Effective and successful if the
organization can refer to the
records retention, records
preparation, and organization
destruction schedule.
THREE STEPS:

1. Preservation
2. Destruction
3.Transfer of custody or

ownership records

"HISTORICAL
GAP IS

CREATED
DUE TO
MISSING
WRITTEN
RECORDS."

- LAILAH GIFTY AKITA -

ACWhaCt is OUNTING

Records?

By : Key Accounting
NORHAKIM BIN AZRISHAH Takeaways Reports Example

Accounting records Accounting records Examples of accounting
records are the general
include any records and include all documents ledger, all subsidiary
ledgers, invoices, bank
books used to prepare utilized in the financial statements, cash receipts,
and checks.
financial statements, account preparation

process for the company.

together with any Businesses must keep

records required for their accounting records

audits and financial on file for a number of

years in case they need to

reviews. Asset and be inspected, according to

liability records, several regulatory

financial transactions, agencies.

ledgers, diaries, and Accounting records for

audits, compliance

any accompanying checks, and other

paperwork like checks company obligations, are

and invoices are all frequently examined.

included in accounting Accounting records

include transactions,

records. general ledgers, trial

balances, journals, and

financial statements.

25 October, 2022

UNDERSTANDING

ACCOUNTING

RECORDS

Accounting businesses and accounting firm are frequently
mandated by law to maintain accounting records for a
specific period of time. The Securities and Exchange
Commission (SEC) mandates that accounting firms
maintain audit and review records for at least seven years,
as well as any records that bolster or cast doubt on audit
findings. There is no universally accepted definition of what
comprises a complete set of accounting records in terms of
corporate documents. Accounting records could be viewed
as a general term.

Different stakeholders may have various and frequently
conflicting objectives, including creditors, equity investors,
or corporate governance interest groups. Their preferences
or requirements for paperwork will fluctuate frequently.
Depending on where they are in the economic or business
cycle, parties requesting accounting records will alter their
request for information.

For instance, demand for financial statements might be
strong during the beginning of an upswing in the business
cycle because investors in shares are optimistic. Briefly put,
accounting records and even accounting processes are
constantly changing to keep up with the changing nature
of the company and the information demands of market
participants. This is especially true during a downturn in the
business cycle when creditors may need more information
about balance-sheet items as they become more hesitant
to lend credit.

Accounting record retention policies:
Keeping accounting records is subject to various legal
restrictions. A minimum of the amount of time required to
support an Internal Revenue Services audit should be
preserved for records. Since the cost of storage will
eventually outweigh the advantage of having them
available, keeping them around indefinitely is inefficient.

WHAT IS
FISCAL
RECORDS?

The fiscal records summarize and document
company transactions. Invoices and receipts
are examples of paperwork that may be found
in an accounting department. It might be a bill,
a receipt, a voucher, or any other type of
paper. The purpose of the record is to create a
money trail that can be followed.

All records are important to the organization
that generates or receives them, to oversight,
and to other organizations. A select few are of
enduring value and ought to be maintained by
the National Archives once the organization no
longer requires them for regular ongoing
operations.

WHAT IS FISCAL POLICY?

Fiscal policy is the procedure through which a
government adjusts its spending and tax rates
to track and influence a nation's economy. It is
a method of monetary policy in which a central
bank manages the amount of money in a
nation. These two strategies are used in a
variety of combinations to direct a nation's
economic objectives.

FISCAL RECORDS EXAMPLES:

Records that have fiscal value relate to an
agency's financial transactions. These may be
budgets, payrolls, vouchers, and accounting
records.

WHAT IS FISCAL
VALUE?

Fiscal value is a term used to describe the Invoices provided to clients fall under the
value of a record as supporting broad scope of this definition since they
documentation for a financial transaction. provide proof that the transaction occurred
Records of this kind are typically retained and that payment is still outstanding.
for at least as long as the transactions or
business connected to those papers are Until the customer's payment is received and
completed. The documents with financial reflected in the accounting records, the
worth can then be coded and filed away in invoice keeps its fiscal value. The transaction
hard copy form or stored electronically, is then considered to be finished, and the
making it easy to access them later on as invoice gains historical value and may be
needed. Recognizing the connection preserved for use in the future, such as as
between a document and a particular supporting documentation for an audit of the
transaction is typically required to accounting records for that time period.
estimate a document's financial value.

This enables you to determine whether the
document has any value in terms of
providing evidence as to the veracity of the
event or proof of certain facts connected to
that occurrence. This point of view
contends that the monetary worth is also
demonstrative in nature and serves as the
rationale for elucidating the series of
events leading up to the event in question.
Financial records in a variety of formats
may be seen as having this type of value
since fiscal value focuses on the facts
surrounding the administration of a
financial transaction.

Many firms believe that documents that
show financial activities related to an
accounting period have fiscal relevance,
at least until all pertinent
documentation and accounting records
are professionally examined and
confirmed to be accurate and complete.

KEY TAKEAWAYS The papers may be physically stored for
a number of years following the audit,
Fiscal policy is the process through allowing for their retrieval when and if
which is government modifies its necessary, depending on the laws and
expenditure and tax rates in order to regulations regulating corporate record
monitor and impact the economy of a keeping in a given nation. This enables
country. you to respond authoritatively to any
questions or concerns about those
Its is a monetary policy technique in transactions and to more simply
which a central bank controls a reconstruct the sequences of events
country's money supply. related to each transaction.

Governments may regulate economic
events by combining monetary and
fiscal policy.

"THE PURPOSE OF
BUSINESS IS TO

CREATE AND KEEP
A CUSTOMER"

Type of Current assets are all of a company's Debentures and bond
Accounting assets that are expected to be sold payables are examples of
or used in the coming year as a noncurrent liabilities. Finally,
GENERAL LEDGERS result of normal business there is equity. Equity on a
operations, such as inventory, cash, corporation's balance sheet
Written By Muhammad Aiman and marketable securities, whereas represents the shareholders'
noncurrent assets are long-term ownership of the company.
A general ledger account is a investments that will not be fully Preferred shares and
record or account used to recognised within the accounting retained earnings are two
categorise, store, and summarise a year, such as tangible and examples.
corporation's transactions. In the intangible fixed assets.
general ledger (and in the chart of General ledgers are
accounts), the balance sheet Next,liability. There are two sorts of
accounts appear first, followed by liabilities: current and noncurrent. incredibly important to a
the income statement accounts. In Current obligations are amounts
general ledgers, we find three owed in the short term, which is business since they provide
elements on the balance sheet. The one year. Account payable and
first category is assets. Current interest payable are two examples. numerous benefits. One
assets and noncurrent assets are Non-current liability is the amount
the two categories of assets. that must be paid in the long term advantage is that general
(greater than one year).
ledgers keep an exact record

of all financial transactions.

As a result, accountants will

be able to easily monitor the

transaction process.

Trial Balance

A trial balance is an accounting worksheet
that aggregates all ledger balances into
equal debit and credit account column
totals. A corporation prepares a trial balance
on a regular basis, usually at the end of each
reporting month. Trial balance is used to
ensure that all entries made into the
organisation are balanced. Trial balance is
highly useful for the firm since it allows
them to observe if their debit and credit are
balanced or not.

Journals

An accounting journal is a detailed record of a
company's financial transactions. Because it is
where transactions are initially entered, it is
also known as the initial entry book. The
entries in an accounting journal are used to
build the general ledger, which is then used to
create a company's financial statements.
Journals are classified into five types: sales
journals, buy journals, general journals, cash
receipts journals, and cash disbursement
journals.

Trial Balance

A trial balance is an accounting
worksheet that aggregates all ledger
balances into equal debit and credit
account column totals. A corporation
prepares a trial balance on a regular
basis, usually at the end of each
reporting month. Trial balance is used
to ensure that all entries made into the
organisation are balanced. Trial balance
is highly useful for the firm since it
allows them to observe if their debit
and credit are balanced or not.

BENEFITS OF

ACCOUNTING

RECORDS Writtern by Muhammad
Aiman

MAINTENANCE OF BUSINESS The accounting department is responsible for
RECORDS maintaining the business record, which is a
collection of financial information, accounting data,
Maintaining business records and other information used to track the financial
Accounting's objective is to produce health of the organisation.
a record of a company's financial The accounting department is also in charge of
activities and position at any given creating financial reports and other required
time. Accounting records are used to documentation for the management team to
make decisions, prepare for the evaluate.
future, and assess the health of a Even the brightest Executive or management will
business. Accounting's major goal is struggle to remember all of the numerous
to keep a company record, which is transactions, such as purchases, sales, receipts, and
a thorough record of all financial payments.
transactions and events that have This happens on a daily basis at work. As a result, an
occurred within a corporation. This accountant must have a record-keeping system that
record provides a clear view of a comprises a current diary, monthly and quarterly
company's financial status, allowing reports, and year-end records.
for better decision-making and Accounting professionals should meticulously track
future planning. the time they spend on various duties. It's also critical
to keep track of when they're doing something
One of the most crucial duties of the productive with their time. In this method, an
accounting department is to keep accountant can see exactly where their time and
the business records up to date and energy are going, what they have done, and what
accurate. This guarantees that the they have missed.
correct information is recorded and
collected, which is critical for the
business to remain operating and
competitive.

BY ME
Magazine

"WE CANNOT
SOLVE
PROBLEMS
WITH THE
SAME
THINKING
WE USED
WHEN WE
CREATED
THEM"

-ALBERT EINSTEIN-

Weaknesses of accounting

records

Non-financial transactions have no

effect on the bisa
olannlycealslohweeetd. The 04. The fundamental purpose of
accountant to financial statements is to present
a complete picture of a
compute financial transactions. financial company's situation at
any particular moment in time.
01. Financial transactions are, after 05.
This may be done in a number of
all, measured in cash. For different ways. The income
example, the accountant statement, for example, presents
computes the revenue of a a snapshot of a company's
company, and the difference financial performance over a
between the expenses incurred specific time period.
and the revenue raised.

02. The financial statements are the

most common way for a
company's condition of affairs to
be reported to the outside world.

03. The difference is the profit of the

company. It is expressed in terms

of money. The same applies to

balance sheets.

06. Non-financial transactions, on the
other hand, have no impact on

the balance sheet. Only financial

transactions are permitted to be

computed by the

accountant. After all, financial

transactions are denominated in

dollars.

Except for those subsidiaries that

07. are made up of many domestic or

foreign Corporations, all

subsidiaries must furnish financial

consolidated statements.

An accountant calculate a company's
revenue as well as the difference between
the cost incurred and revenue generated.

Accountants have a direct influence on the accounting records of the company.
To compute the entity's income, the accountant can utilize various inventory
valuation methods, depreciation methods, revenue treatment, and capital
expense treatment.

As a result of the absence of objectivity, earnings may be inaccurate. This bias
accounting information may result in investors not accurately valuing the
company and not being able to make sound business decisions.. A company's
share price may be affected by inaccuracies in its accounting records before,
during, and after its first public offering, as well as throughout the post-initial
public offering period.

The capacity of investors to make informed business decisions is influenced by
the correctness of a company's accounting accounting information that investors
get, for example, has a significant impact on their records. The exposure to
understanding of the company's activities.

"Investors must recognize the accounting
they get has a significant impact on their

exposure to understanding the company
activities.."



How company organize

their records.

Consider the lifecycle of a record as a period of time that begins with creation and
concludes with its disposal or preservation. The phases may have different names
in different programmes, software, and educational materials, but they are all
fixed and work simultaneously and in a continuous manner.

The lifetime is predicated on the idea that some records retain their value for a
longer period of time than others and that the value of records Constantly
changes throughout time. In contrast to records with three-year retention, which
completely lose their value after three years, records with perpetual retention, for
instance, retain their value permanently. The records lifecycle assists companies
in successfully managing and keeping records from creation, modification,
maintenance, destruction, and disposition.

Effective records
management process.

One of the most crucial day-
to-day jobs for any organization is to
ensure that your company's records are
properly preserved and stored. This work
is made much easier by using a records
management programme. lt is crucial to
keep track of the documents you're
keeping and when you're shredding
them. While ensuring also that this
activity is conducted by employees who
have the necessary knowledge.

Although intermediate actions such as
offsite document storage might
improve workflow and efficiency,
building and maintaining a
comprehensive records management
programme can have a significant
influence on your business. Your
organization will have a road-map that
tracks and files all of your records,
leading to a more efficient work
environment, if the correct
programme is in place.

Challenges Company Need
To Face

Every company needs to adapt to some challenges that will
come and they need to find solutions to every challenge that
comes so the company can still work and gain more profit if
they control the challenge that is coming these are some
challenges that every company might face in managing their
accounting and fiscal record management.

Firstly, hiring and retaining talent to make sure that person
will stay with the company to future use. Retaining top
employees as competition intensifies is a key challenge.
Some finance and accounting managers are concerned
about keeping valued employees to make sure financing
issues can be solved properly. Some accountants might be
concerned about low morale and high rates of burnout
because of heavy workloads. To ensure that this problem will
be solved properly, the accounting and finance department
apply key employee retention strategies.

Secondly, most accountants need to dealwith tax law
changes. Tax law changes is a common concern but it rapidly
changes in 2021 due to the pandemic covid-19. Due to the
covid-19 pandemic that strikes every country, the new tax
needs to be released and it includes tax extenders,
deductibility of purchasing power parity expenses, the
potential for second-draw purchasing power parity loans and
simplified process under $150,000. Accountants also need to
know how to digitized, accurate and easy-to-access records
with accounting software will make a complex tax year more
manageable.

Thirdly, accountants these days need to keep up with new
technology and tools to make sure they can catch up with
the new era that has been using technology often.
Sometimes keeping up with evolving technology can be a
burden but there is a reason skills around cloud-based
accounting software are some of the most in-demand for
accountants and finance professionals.