ALL ABOUT BUSINESS RECORD MANAGEMENT SUCCESS TIPS IN MANAGING BUSINESS RECORD TOOLS TO HELP YOU MANAGE YOUR BUSINESS RECORD Grab the success with the best tools! START YOUR BUSINESS BY KNOWING TYPE OF BUSINESS Practice proper business record.
Acknowledgment In the name of allah, we would like to say "alhamdulilah" because we have just completed the assigned record management project. We encounteredsome challenges along the way, but thanks to Allah's help, we were able to overcome them and meet our deadline. On top of that, we'd want to say thanks to Puan Nor Kamariah Chik, one of our business record management professors, for all of her help and support while we worked to publish this magazine. Not forget , a big thanks to each and every member 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
W h a t N e e d s t o d o f o r Be t t e r P e r f o r m a n c e i n BR M . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . T i m e l y Re c o r d Bu s i n e s s P e r f o r m a n c e . . . . . . . . . . . Bu s i n e s s Re c o r d M a n a g e m e n t P r o c e s s . . . . . . . . . . W h a t i s t h e E f f e c t o f BR M o n Bu s i n e s s . . . . . . . . . P e r f o r m a n c e . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A b o u t A r k i b N e g a r a . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . W h y s h o u l d Bu s i n e s s e s Ke e p Re c o r d . . . . . . . . . . . . . Bu s i n e s s r e c o r d m a n a g e m e n t ? . . . . . . . . . . . . . . . . . . . . C h a l l e n g e O f Bu s i n e s s Re c o r d M a n a g e m e n t F o r S m a l l A n d M e d i u m E n t e r p r i s e s ( S M E s ). . . . C o m m o n Bu s i n e s s Re c o r d Ke e p i n g T o o l s . . . . . . . Be n e f i t s o f Bu s i n e s s Re c o r d M a n a g e m e n t . . . . 1 3 T y p e s o f Bu s i n e s s Re c o r d . . . . . . . . . . . . . . . . . . . . . . . . . 6 Bu s i n e s s Re a s o n s t o Re c o r d M a n a g e m e n t . . T y p e o f Bu s i n e s s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A u t h o r s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Re f e r e n c e s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . TABL E OF CONT ENT page 1 2 3 4 6 6 7 8 8 1 2 1 2 1 6 2 2 2 6 3 1 3 3 3 5 3 6
WHATNEEDTO DOFORBETTER PERFORMANCE INBUSINESS RECORD MANAGEMENT? An entrepreneurial business must maintain accurate records containing numbers and facts in order to protect itself from fraud and mistakes. Inconsistencies could arise as a result of delay tactics, which could seriously harm a company.The ideal way to handle bookkeeping for entrepreneurial businesses that operate a careful records management system is to promptly document business transactions. A firm always faces challenges due to outstanding and delayed tasks. Due to this weakness, strange problems developed that could present challenges for decision-making in the future.Occasionally, mistakes can be made when entering data, misrepresenting records in the process. This can lead to information that could lead to poor decisions A business is kept risk- and fraudfree by maintaining accurate records management procedures and timely transaction documentation. The likelihood of errors and fraud may rise if bookkeepers do not manage and control the record-keeping procedure on time.Tampering with records is wrong in the corporate sector. The majority of bookkeepers engage in this practise for their own benefit, but they also run the risk of damaging the reputation of those engaged and hurting a company's reputation. All small and medium firms must implement periodic reviews of business transactions to make them risk- and fraudfree.Effective bookkeeping records can be maintained by experienced bookkeepers. By doing so, the business will face less unclear risks. Studio Showde page 2
IMPORTANT Timely business record management In-time recording of business transactions keeps small and medium enterprises, such as tea café, hotel businesses, bakeries, installment shops, and fast-food businesses, tension free and risk-free from any errors or fraud. Prudent bookkeepers never leave the transactions without recordings, and review the records periodically to have proper control over the business records. When journalizing transactions are made timely, the other steps of the business accounting cycle become easier. The recording of business transactions is the first step of the accounting cycle, and if the first step is done timely, the remaining process will go properly, minimizing the chances of mismanagement and reducing the chances of tampering. SMEs that manage their business records in time and carefully remain safe from many unseen losses and entrepreneurial businesses may not be in trouble. THE RECORDING OF TIMELY RECORDED TRANSACTIONS KEEPS THE BUSINESS TENSION FREE" "IF THE FIRST STEP IS DONE TIMELY, THE REMAINING PROCESS WILL GO PROPERLY" page 3
BUSINESS RECORD MANAGEMENT PROCESS Business Record is very important to the business, so it is crucial to strategically manage the process of managing business record to improve its efficiency. The record management process is the lifecycle of a record, from its creation to destruction or storage in an archive. he lifestyle of a record management can be varied in the number of process. Some have four process and some have five process. In this example, it has five process which starts from creation, use, maintain or protect, disposition and archive or preservation. In creation process is when the record is made and then the record is being used. While using the records, they will be protected to ensure they are in good condition. Once the record are no longer needed, it will disposed or destroyed but before that the records will be assessed first whether to destroy it or put it in archive and destroy later or keep in archive forever. page 4
WHY IS THE RECORD MANAGEMENT PROCESS IMPORTANT? Records management ensures that records are securely managed, accessed, and preserved as needed. Additionally, it makes sure that the information is stored, accessed, and used in accordance with all applicable laws and regulations. Here are some of the essential of record management process: historical knowledge compliance security ACCESS CONTROL When records are kept properly, businesses can access older files with ease and monitor their development over time. Records from the past also shed light on how business operations were handled in the past. Having a compliance of files with its law and regulation can protect the business from fines and lawsuits due to mishandle documents. Proper record management process will prevent the loss of record due to bad storage practice including record breach and hacking attempts. Organisations have more control over who gets access to specific sorts of data thanks to efficient recordkeeping systems and they can limit the data user. page 5
W H A T I S T H E E F F E C T O F B R M O N B U S I N E S S P E R F O R M A N C E ? B u sin e s s r e c o r d m a n a g e m e n t h a s a p o sitiv e r ela tio n s hip wit h b u sin e s s p e r f o r m a n c e. P r o p e r p r a c tic e o f B R M c a n h elp t h e b u sin e s s g r o w a n d p e r f o r m b e t t e r, e s p e cially in S M E s. It h a s m a n y p o sitiv e e f f e c t s o f B R M o n t h e b u sin e s s p e r f o r m a n c e s u c h a s in improving their record, reducing time searching for records, and enhancing efficient record pratice. When the record are kept properly and systemically, it easier and faster to find them. The extra time can be used to complete other tasks. A proper BRM will also help in getting past data to make analysis easily. For example, past accounting record can be reviewed again to analyse the new accounting data. Without historical data management, it will be hard to predict the future and make assumption in business like to predict sales and forecasting production. BUSINESS RECORD MANAGEMENT p a g e 6
1 2 3 ABOUT ARKIB NEGARA National Archives of Malaysia (Malay: Arkib Negara Malaysia) is an organization that manage most of the memorials dedicated to Malaysia's former prime ministers and notable figures. The headquarter of National Archives is located in Jalan Tuanku Abdul Halim Get to know more on: http://www.arkib.gov.my/en/web/guest/ home Provides reference and research to government departments and the public Conducting research and preparing documentation for information about history. To provide advice to Government departments on the management of public records in a systematic and effective. FUNCTIONS page 7
Why should business keep record? All businesspeople are required to maintain records. Keeping accurate records is crucial to the success of your organisation. Keeping good records will enable you to: Track the development of your company Prepare your financial statements should be ready. Determine your income sources. Maintain a record of your deductible costs. Keep a record of your property ' s basis. Get your tax returns ready. page 8
Records are essential for keeping track of a company ' s development, as they can demonstrate growth, sales, and adjustments needed to increase the likelihood of business success. Monitor the progress of your business To create precise financial statements, you need reliable records. Included in these are balance sheets and income (profit and loss) statements. while dealing with your bank or creditors, or while managing your business, these statements might be helpful. Prepare your financial statements You need good records to monitor the progress of your business. Records can show whether your business is improving, which items are selling, or what changes you need to make. Good records can increase the likelihood of business success. Determine your income sources. You risk forgetting expenses when you prepare your tax return if you don 't note them as they happen. Maintain a record of your deductible costs For taxation reasons, your basis is the sum you invested in property. The basis is used to calculate the gain or loss on the sale, exchange, or other dispose of property as well as the deductions for casualty losses and depreciation, amortisation, and depletion. Keep a record of your property's basis Accurate records are essential for filing taxes, as they must back up earnings, outlays, and credits declared. These records are the same ones used to prepare financial statements and monitor a company. Prepare your tax return page 9
AND ANSWER QUESTION The law does not require specific records for federal tax purposes, but the type of documents needed depends on the type of business. HOW LONG SHOULD I KEEP EMPLOYMENT TAX RECORDS? HOW SHOULD I RECORD MY BUSINESS TRANSACTIONS? The action, expense, or event the document records will determine how long you should retain it. Your records must be kept for as long as necessary to support the income or deductions listed on a tax return. WHAT KINDS OF RECORDS SHOULD I KEEP? Supporting documents are produced by your company's purchases, sales, payroll, and other transactions. These documents include data that you must enter in your books. Keep all employment tax records for a minimum of four years. HOW LONG SHOULD I KEEP RECORDS? page 10
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By SYAZWINA CHALLENGES OF BUSINESS RECORD MANAGEMENT FOR SMALL AND MEDIUM ENTERPRISES (SMES) CHALLENGES OF BUSINESS RECORD MANAGEMENT FOR SMALL AND MEDIUM ENTERPRISES (SMES) For a business ' s success, maintaining a proper business record is very crucial. It is a huge reason for SMEs to keep their business records. It may help the business owner to have an accurate financial report which is vital for a company to monitor the progress and prospect of the business. At the very least, keeping records is done to ensure that there is enough documentation and knowledge of the corporate activity. However, for Small and Medium Enterprise (SMEs), there are challenges for them to apply business recordkeeping management. Small and Medium Enterprises (SMEs) are vital for the expansion and development of the economy in a country. This is through job opportunities, earning of revenue, and fair contribution of the income which lead to poverty reduction. There are a lot of factors that influence the performance of the SMEs. It may include infrastructure, legal and regulatory framework, record keeping, and limited access to finance. BUSINESS RECORD MANAGEMENT page 12
LOW EDUCATION A crucial aspect of a business ' s success is the education of human capital. The foundation for the intellectual development needed by business owners for success is provided by education also training. The willingness of a business owner to implement and realize the importance of proper record management in their business is influenced by their level of education. Business owners with low levels of education tend to ignore record-keeping management in their business. However, there are also business owners who are confidently keeping their business records in their way, without proper techniques. Small and medium business owners basically lack guidance and knowledge to prepare an appropriate business record. Their background that mostly does not have a high level of education really influences the way they think and perceive record management. CHALLENGES Basically, the challenges the small and medium business owners face are because of their own attitude that not aware of the importance of business record keeping, and the perception that considered keeping a business record is a burden in terms of cost, time, tax, and profit or loss. The low level of education of the small and medium business owners drove a lot of negative perceptions towards business record management such as : BUSINESS RECORD MANAGEMENT page 13 RECORD MANAGEMENT AND COST IMPLICATION Small and medium business owner have the perception that doing record management add up unnecessary cost to their business operation thus minimizing the profit. They are not keen on record management as they see record keeping as an activity that waste of money. They find it is a waste of money when they need to buy a computer, pay the employee, and need to buy essential stationery for the record-keeping activity. Business owner also avoids recording their business transaction to avoid tax burden.
RECORD KEEPING AND TIME CONSUMING Small and medium business owners think that managing business record consume a lot of time. For them, this activity is the least important activity in the operation of their firm, and most of them also perceive that the record-keeping activity is only suitable and needed for the large business, not for their small and medium business. Anyhow, the effect of inappropriate record keeping may give more burden to the business owner like the problem of keeping track of their business operations, eventually going out of business and occasionally shutting it down. BUSINESS RECORDMANAGEMENT page 14 RECORD KEEPING AND TAX BURDEN Fears of tax burden become one of the reasons for some small and medium business owners being uninterested and do not apply record keeping in their business. This business owner is also scared to be classified as a large business and needs to pay for a tax, so they avoid managing their business records. From their perspective, managing their business records, will reveal the business ' s revenue and by that, they may need to pay for a tax. RECORD KEEPING IN DETERMINING PROFIT OR LOSS There are also small and medium business owners that perceive managing business records can help in determining profit. But, they are not managing their business record in a formal and proper way. This causes them cannot know exactly the profit of their business, and they just simply estimate the profit. This behavior is caused by the lack of knowledge and guidance for business owners to manage their business records. Record keeping give a bunch of benefit to a business, it helps small and medium business owners to monitor the progress of their business, able to track sources of receipts and deductible expenses, prepare financial statements, and others.
BUSINESS RECORD MANAGEMENT page 15 Other challenges to implement proper record management for SMEs are 2. LACK OF TIME Small business owners mostly have no time for preparing business records as most of the time, they are focusing on selling activities, and other work regarding their business, rather than spending some time preparing business records. Most of them are too focused on business profit until they neglect the benefits and importance of business records in their business. 3. COMPETENCE OF CLERICAL STAFF As some business owner does not have a vast knowledge of record keeping in their business, their staff also does not have the skill to keep proper business records for the business ' s growth. This makes the business far from the ability to prepare a business record in their business when none of the people in the organization know how to prepare it. C O N C L U S I O N Poor record keeping may be a reason for small and medium businesses cannot achieve growth and development. A lot of issues might come when a business owner does not prepare and keep their business record properly and in an efficient manner. These negative behaviors and perceptions toward business records come from inadequate knowledge and guidance for business owners to keep their business records properly. So, the government shall take action to educate these business owners who have a lot of opportunities in developing the country ' s economic growth. Training and guidance should be given to equip them with skills in keeping business records and knowledge of the business.
COMMON BUSINESS RECORD KEEPING TOOLS RECORD KEEPING FOR SMALL BUSINESS BUSINESS RECORD MANAGEMENT COMMON BUSINESS RECORD-KEEPING TOOLS FOR SMALL BUSINESS For a small business, record keeping is also essential for their business, they can start their business with just a simple recordkeeping system, and when their business grows and develop, they can upgrade their business record system to manage more records. Paper-Based "Tickler " System Computer System Cloud Computing : - File Folder -Hanging Folder - Cabinet Storage - Accordion Folder - Cloud Computing Accounting -Cloud Computing File Hosting BY SYAZWINA page 16
PAPERBASED BUSINESS RECORD MANAGEMENT TOOLS This is the simplest tool for small businesses and beginners to start managing their business records. The simplest way is the best for them, especially for the starter. 1. FILE FOLDER File folders can hold also keep loose paper for the organization and protection of important documents. This file folder can be simply purchased at the office supply stores. To easily recognize the file and the category, a business owner can label each folder based on the file content by writing directly on the tabs or by using labels with the adhesive that has been adhered to the tabs. 2. HANGING FOLDER Small business owners also can use this folder to manage their records. This type of folder might be seen as old school in a modern office, even so, this folder may help the business owner to organize all the important records and store them in one proper place so that they can be easily found when need it. page 17
3. CABINET STORAGE This filling cabinet is usually used to store a hanging folder. Lock this cabinet when it is not in use. PAPERBASED 4. ACCORDION FOLDER An accordion folder's top folds open like an accordion to reveal sections to store business documents. Each section in the folder has a label, making it easy for people to find each document needed. This accordion folder is used to keep and store documents in a closet or on a shelf without a filing cabinet. ''TICKLER" SYTEM Business owners may use this system to help in remembering impending events. This method is called as "tickler " system. When business owners use a time-management-based organizational system, they are able to manage their work using a tickler file. Tickler files are designed for people to assist them in setting priorities in their work. The upcoming events are such as : License renewals, insurance reviews, upcoming bills, and call-backs BUSINESS RECORD MANAGEMENT page 18
BUSINESS RECORD MANAGEMENT COMPUTER SYSTEM Computer-based systems are now becoming a standard, although there are still some business organizations that need to keep some form of paper-based record keeping. As you become familiar with using computer record keeping, then start using a computer-based system. Using a computer system also can be more beneficial when it is a space safer, also documents and records can be just transmitted over the Internet. However, the computer system records also should be backed up to another hard drive daily, at a remote location so that any lost records can be recovered. Cloud Computing One further choice become more widely available as an alternative or to supplement paper or computer-based systems is cloud computing. Rather than using a personal computer, a business owner may utilize cloud computing for storing, managing, and processing data on the Internet. Not required to install software updates Have a small likelihood to lose data due to computer crashes. Having access to your data (such as financial information) from any location with an internet connection. The benefits of using cloud computing include: 1. 2. 3. page 19
EXAMPLES SERVICES PROVIDED BY CLOUD COMPUTING BUSINESS RECORD MANAGEMENT 1. CLOUD COMPUTING ACCOUNTING There are companies that offer their product with online accounting options, so instead of buying software for the computer, the business owner may also buy an accounting service for their business. The accounting firm ' s server hosts the software and keeps the financial details, and both of its services are delivered online. 2 . CLOUD COMPUTING ACCOUNTING If business owners use computer files in their business, they can use internet file hosting services to keep and share those files with employees and clients. Multiple people can have access to the file from any place with an internet connection. Large amounts of data can be retained using file hosting. There are free and paid hosting options available. page 20
TThheebbeesstt pprreeppaarraattiioonnffoorr ttoommoorrrroowwiissddooiinngg yyoouurrbbeessttttooddaayy -H. Jackson Brown Jr. page 21
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The records provide context and circumstance. ( Vital Records) These records can be used by a policymaker to claim for any damage or loss. When it comes to records management, the term 'vital record' refers to records that are critical to the organization's ability to conduct business both during and after a disaster; in other words, it would hinder the company from carrying on with day-to-day operations if it was unavailable. WWW.REALLYGREATSITE.COM ccounting & Fiscal Coporate Permits and business license Insurance Automobile insurance Claim BUSINESS RECORD 13 TYPE OF BUSINESS RECORDS Used to illustrate the financial process in a company organisation. It is critical to keep complete records of all company transactions. This will assist you in determining whether you are conducting business properly. It can also provide information on a company ' s performance. Executive Balance Sheet Used to explain the organization ' s management and anything that demonstrates information about the organisation. P olic y S t a t e m e n t page 27
These records are related with industrial operation and all documents relating to the manufacture of a Batch, Personnel Records are records pertaining to employees of an organization. These records are accumulated, factual and comprehensive information related to concern records and detained. All information with effect to human resources in the organization are kept in a systematic order. Such records are helpful to a manager in various decision -making areas. WWW.REALLYGREATSITE.COM Manufacturing B a t c h M a n u f a c t u rin g B a t c h Property, plant, and equipment are long-term assets that are essential to business operations. So the records is Any records relating to the functions of managing land and buildings are included. Personnel Legal Used to explain the organization ' s management and anything that demonstrates information about the organisation. The record shall contain, but not be limited to, written, printed, or electronic information, documents, or data relevant to services, programmes, and all other official acts conducted on behalf of that offender or juvenile. Plant and Property Depriciation Schedule Attandance Report page 28
Sales and Marketing records is the record that related to the selling and buying in the business The information you have on your consumers, including but not limited to their contact information, how frequently they buy from you, what they buy, and how they pay their bills. Your company ' s sales records are very likely to be your most important marketing information source. Why we should maintain the records for seven years According to Section 82A (1) of the Income Tax Act of 1967, Every person who is required to submit a return of their income for a year of assessment shall retain and securely keep sufficient documentation for a period of seven years from the end of the year of assessment for the purposes of determining his chargeable income and tax payable. WWW.REALLYGREATSITE.COM P u r c h a s i n g Purchasing record is a record that describes the specifications of a vendorpurchased item or tool. In the purchase orders application, you generate a purchase order. Its also Concerns the purchase, lease, or hiring of large stores and equipment You can make purchase orders and reuse data and vendor information while adhering to consistent terms and contracts. A purchase order can contain numerous buy requisitions for the same vendor. HOW ? Sales and Marketing Taxation Taxation records relates to the amount imposed as tax or the revenue generated by taxes. page 29
An administrative record is a compilation of all materials (written and electronic) that were before the agency at the time it reached its final judgement. An Administrative Record details an agency ' s decision-making process and the reasoning behind the conclusion. Its been use for daily uses. WWW.REALLYGREATSITE.COM Administrative Advertising These records are created in the process of promoting goods and services to the customers. Advertisements are critical for businesses because they are the most direct and proven method of reaching out to potential customers. They can have an immediate impact on your company in a variety of ways such as brand awareness, brand reputation,correction and oppologies and sales. For business purpose, in marketing is the key to success in this space. High-performing records management businesses achieve market dominance through the careful execution of deliberate strategies. Although you 'll need to consider your company ' s unique marketing objectives, there are several tips we advise our partners to integrate into their promotional plans and strategies. Brouchure Organizational chart page 30
Despite decades of adopting various nonpaper storage medium, the amount of paper in our offices continues to grow. An effective records management programme addresses both creation control and records retention (a system for destroying useless records or retiring inactive records), thereby stabilising the growth of records in all formats. Business Reasons TO THE R ECORDS MANAGEMENT Control the Creation and Growth of Records Reduce Operating Costs Administrative expenditures are required for filing equipment, office space, and staffing to maintain an organised filing system (or to seek for lost data when there is no organised system). Improve Efficiency and Productivity Time spent looking for missing or misfiled records is wasted. A good records management programme can assist any organisation in upgrading its recordkeeping systems, resulting in improved information retrieval and office efficiency and productivity. A well-designed and well-managed file system with an effective index can speed up retrieval and convey information to users. page 31
Safeguard Vital Information Because every organisation, public or private, is prone to loss, every organisation need a thorough programme for protecting essential documents and information from catastrophe or tragedy. Vital records programmes, which are operated as part of the overall records management programme, preserve the integrity and confidentiality of the most essential records and safeguard the vital information assets in accordance with a "Plan" to protect the records. Minimize Litigation Risks Some states are the most tightly regulated countries in the world in terms of recordkeeping requirements. Because these regulations can be difficult to identify, interpret, and apply, they can cause significant compliance issues for businesses and government entities. The only way an organisation can be reasonably certain that it is in complete compliance with laws and regulations is to have a good records management programme in place that takes responsibility for regulatory compliance and works closely with the Office of General Counsel. Noncompliance with rules and regulations may result in significant fines, penalties, or other legal consequences. Ensure Regulatory Compliance Businesses employ records management programmes to mitigate the risks of litigation and related penalties. This can also be said of government agencies. A consistent records management programme can lessen the liabilities associated with document disposal by allowing for methodical, routine disposal in the course of business. page 32
owned by one person who typically is also engaged actively in the running of the firm. The solitary proprietor contributes to all of the company's equity capital, which is typically raised from personal savings or soft loans from family and friends. All profits go to the owner as well. The characterisctic of sole proprietorship is freedom from assets disposal The owner is free to deal with the assets of the organisation without regard to any legal constraints. It is extremely risky due to the owner's inseparability from the firm. Sole proprietorship Simple to control and recognise: Due to the minimal quantity of assets that a single proprietorship business controls, it is frequently tiny and easily recognised. Some of the characteristic of partnership is In terms of liability, the partners must risk all of their own assets, even those not invested in the firm, because under the partnership, each partner is personally liable for the obligations of the business. In terms of liability, the partners must put all of their assets at risk, including those not invested in the firm, because each partner is personally liable for the business's obligations under the partnership. A partnership is generally described as a legal arrangement between two or more people in which each individual contributes something in order to carry on a lawful business with the goal of making profit that will be shared among the partners in an agreed-upon proportion. As a result, for a partnership to exist, there must be an agreement to engage in a commercial activity.A partnership agreement that governs the relationships between the partners should include name of organization, the type of business, and duration, Profit sharing among parties, including salaries, because not all partners may be employed full-time by the partnership. There a lot of requirement and checklist that be refer at any legal and advice consultant sevices There also has advantages and disadvantages itself. Some of the advantages is low starting business cost, there is no profit sharing and has fewer regulations. Next, the disadvantages of sole pproprietorship is The death of the business owner has an impact on the business and its hard to raise capital because has limited acsess to loan ORGANIZATION BUSINESS Sole proprietorship Partnership page 33
A corporation is a separate legal entity from its owners.Limited liability is what makes a corporation unique. Dividends and stock appreciation benefit shareholders, who are not directly responsible for the firm's debts. Large companies are almost always corporations. The advantages of corporation is, firstly limited liability. Company owners are only liable for the amount they invested . Next, competent management. They vote for the board of directors who eventually hire a professional management team to manage day to day operation. Then, easy to transfer ownership shares. Stocks or shares can be easily traded in the market, regardless of their volume. The characteristics of Cooperative is voluntary association. A cooperative society is a free union of people without the use of money. A cooperative society is open to anyone, and they are free to leave at any moment. Next, democratic management. An individual member is seen not as a capitalist but as a human being, and under collaboration, a general rule—one man, one vote—fully ensures economic equality. A cooperative organisation is a group of people, typically with limited financial resources, who have voluntarily joined forces in order to form a democratically controlled, organisation, distribute the necessary capital fairly, and take a fair share of the project's risks and rewards. The concept of collaborating and coexisting is symbolised by the word "cooperation." The only system of voluntary organisation that is suitable for less fortunate individuals is cooperation. It is a group of people that voluntarily associate with one another as fellow humans on an equal footing in order to advance their own economic interests. The disadvantage of coporation is Incorporation cost. Forming an incorporation is more expensive than starting a sole proprietorship or partnership. Next, doubole taxation. Two taxes are remitted, which is the corporate earnings and payments of dividends to shareholders. Lastly, too many documentation. Companies must maintain accounting records, licences, and other key documents in addition to filing annual reports, tax returns, and other legal paperwork. ORGANIZATION BUSINESS Coporation Cooperative page 35
AUTHORS TENGKUNURIZZAHIWANIBINTI TENGKUHASNI Matricnumber: 2023376400 Group :KBA244 2B Email: [email protected] NURSYAZWINAAMANIBINTIAHMADSYAH Matricnumber: 2023149243 Group :KBA244 2B Email:[email protected] SUMAIYAHBINTINORDIN Matricnumber: 2023148933 Group :KBA244 2B Email: [email protected] UMI SURAYABINTI MOHAMEDNASER Matricnumber: 2023502059 Group :KBA244 2B Email: [email protected] RABIATULADAWIYAHBINTIPARMUN Matricnumber: 2023502207 Group :KBA244 2B Email: page 35
References Record keeping for small business (p. 18). (n.d.). Financial Education Cocuriculum. Zukisani Myeko, & V. Eliya Madikane. (2019). Challenges of record keeping for Engcobo small, micro and medium businesses, South Africa. mariya baig, zeenat kanwal, & muhammad siddique. (2023, February). Timely Business Record Management Keeps a Business Safe An Opinion from Small and Medium Enterprises. Retrieved from research gate website: https://www.researchgate.net/publication/369065859_Timely_Business_Record_ Management_Keeps_a_Business_Safe_An_Opinion_from_Small_and_Medium_Ente rprises Danford, S., John, K., & Lazaro, K. (2014). A Challenge of Business Record Keeping for Tanzania Small and Medium Enterprises (SMEs): A Case of Madukani Ward- Dodoma Region. European Journal of Business and Management, 6(38), 82–86. https://iiste.org/Journals/index.php/EJBM/article/view/18778 Types of Businesses. (n.d.). Corporate Finance Institute. Retrieved July 15, 2023, from https://corporatefinanceinstitute.com/resources/management/types-ofbusinesses/ Kirvan, P. (2023, June 30). What is records management?: Definition from TechTarget. Content Management. https://www.techtarget.com/searchcontentmanagement/definition/recordsmanagement-RM Arkib. (n.d.). http://www.arkib.gov.my/en/web/guest/home Book 1. Journal Article 1. 2. Website 1. 2. 3. 4. page 36
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