DAIC & CREAD prompt Entrepreneurs on the Importance of Proper Record Keeping
The Dominica Association of Industry and Commerce (DAIC) and the Climate Resilience Execution Agency for Dominica (CREAD) hosted the second level of the MSME Virtual Financial Management Training via zoom on Thursday, June 11th, 2020.
This level two session on Record-Keeping was facilitated by Mr. Elijah Leblanc, the MSME Business Advisor from CREAD. This session sought to ensure that all participants understand the importance of record-keeping, basic bookkeeping terms, fundamental knowledge of the bookkeeping process, and the effects of bookkeeping on financial statements.
It was emphasized that bookkeeping is important in making operational and investment decisions, as well as preparing accurate and complete financial statements. Fundamental to record-keeping and understanding the financial health of any business are the financial statement. The three main financial statements (Balance Sheet, Income Statement, and Statement of Cash Flow), were presented and carefully explained. It was further emphasized that all financial statements must be accurate, complete, relevant, a true representation of the transactions of the business, and comparable in order to compare the business over subsequent periods.
Mr. Leblanc detailed the stages involved in bookkeeping which are vital to successful record keeping. He included that analyzed transactions must be measurable, involve independent parties and source documents; the accounting equation must include assets, liabilities, and equity; transactions must be categorized taking into consideration the balance sheet, income statement and statement of cash flow; and debit and credit transactions must be accurately recorded detailing the giver and receiver.
The Partners encourage all businesses to understand and implement the principles and advice shared in this session in order to make improved and sound operational and investment decisions. To view the full session and participate in the assessment of Level Two, visit the DAIC’s YouTube Channel at https://youtu.be/Wp75De7vfcU
This article is copyright © 2020 DOM767
