Explain why it is important to maintain bookkeeping records and the users of such record

Bookkeeping is the recording of financial transactions which includes receipts, payments, receipts and sales by an individual or organization. Bookkeeping and accounting are two different things because the accounting process includes the bookkeeping function, an accountant a person who is responsible for recording financial transactions recorded by the bookkeeper and files forms with government agencies.
Bookkeeping has some common methods such as single entry and the double entry bookkeeping system apart from this system, any process involving the recording of financial transactions is a bookkeeping process. A bookkeeper also known as an accounting clerk or technician is a person who records day to day financial transactions of an organization he/she is usually responsible for writing the day books which consists of receipts, purchases, payments and sales.
The importance’s of keeping accurate financial records are as follows
One of the most importance’s of keeping records is to be able to determine the profitability of a business, to be able to know if one’s business is doing well is very important for any firm since the main goal is to be able to have a positive return in any work.
Maintaining proper financial control of the business is also another main goal for any business and record keeping is one of the most accurate way of doing so, since it is very important to be able to have a record of everything that goes on in the company that being from the sales to the purchases and the control of stock that comes in and goes out.
Creditors, investors and other potential people in the company have the right to know how the business is going on this helps them to be able to make decisions concerning their involvement in the company and its future so the daily transactions and all the other records are very important.
For the government these records help them to determine the amount of tax that they should impose as a right for any operation that brings about a certain income to pay tax.
For any loan to be permitted a sort of proof of return or ability of return is required by the legal lender to give out any amount of funds and in this case a financial report is also considered as one of the proof of statement that any lender can use to base his judgment on whether the borrower can return his money and interest on top of it.
Decision making, for the top managers to make accurate and future decisions the information recorded over time is very important to help them make wise and accurate decisions for a better future.
This information that is collected throughout the certain period of time have two entirely different users one who are closely related and the others which have less effect or concern about the business known as internal and external users.

INTERNAL USERS
Management, they are entitled to the financial information so that they can analysis the organizations performance and position and by taking appropriate measures to improve the company results.
Owners, for knowing if his/her business is making a profit or not the owners of any business is always focused on making a profit, the information collected can give a view for the future and if the company is going to do well in the future.
Employees the human work force need to have a detailed view to see if their time and work done is making a positive outcome or not, this helps them to ask for a raise as well as have a job security.
EXTERNAL USERS
Creditors, the credit companies are entitled to the financial information so as to know the credit worthiness of the organization this include suppliers, they set the terms of credit according to the assessment of their customers ‘financial health
Tax authorities, the government needs this information to determine the credibility of the tax returns filed on behalf of the company.
Customers, for assessing the financial position of its suppliers which is necessary for them to maintain a stable source of supply in the long term.
Investors, to this investors the feasibility analysis if investing in the company is determined by the information that the company provides to them to determine the return on their investment before they commit any financial resources to the company.

REFERENCE LIST http://accounting-simplified.com/financial/users-of-accounting-information.html http://www.smallbizaccountants.com/The-Importance-of-Proper-Bookkeeping http://ird.gov.dm/index.php?option=com_content&view=article&id=59:the-importance-of-record-keeping http://autocww.colorado.edu/~blackmon/ContentFilesExpt000403/EconomicsAndBusiness/accounting%20and%20bookkeeping.htm
http://en.wikipedia.org/wiki/Accounting_equation