How accounting records helps the business owners to plan effectively?

Record keeping is the means by which we measure and describe the result of economic activities. It is the language of business. It is the way business people set goals, measure result, evaluate their performance. Record keeping is not limited to the business world alone we live in era of accountability, where an individual must renders accounts for his income and must file income tax returns. Normally an individual must supply person to obtain credit etc. The primary purpose of record keeping is to provide decision makers with information in making economic decision. This is seen through the preparation of financial statement such as profit and loss accounts, balance sheet and cash flow statement in conformance with acceptable standards. Record keeping also seeks to identify all the cost components involved in manufacturing a product as well as determine the cost per unit of the product. It also concentrates on the general purpose of the finance reports, by showing the financial reports of the business. Mohammed A. Aziz student of Islamic University college,Ghana