We have learned the importance of business records and the different types of records that an entrepreneur should maintain. We have used the John enterprises case to understand how to maintain records.

Records are a legal requirement. Records help an entrepreneur keep track of business transactions, aid in the filing of taxes, compile final accounts and act as a future reference. Record types include: Credit records, Debtors records, Production records, Cash book, Purchases records, Stock records and Assets records. As the business becomes more sophisticated it will be necessary to hire a knowledgeable book keeper or accountant.