Senior High School

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ENTREPRENEURSHIP
Quarter 2 – Module 6
Keeping Business Records

www.sweetnsimpledesign.com

Bethyl B. Gacayan
Compiler / Contextualizer

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 Second Quarter, Module 6, Week 6
Keeping Business Records

Content Standard : The learner demonstrates understanding of

concepts, underlying principles, and processes of
starting and operating a simple business.
Performance Standard : The learner independently or with his/her classmates
starts and operates a business according to the business
plan and presents a terminal report of its operation.
Competencies : Explain the reasons for keeping business records.
Learning Outcomes : Upon the completion of the given unit, the SHS
learners are expected to discuss the reasons for keeping
of business records.

What I Know

You can let it out, no doubt!

Right or wrong. Mark with a check ( ) if the statement is right or a crisscross
(x) if the statement is wrong as the reason/s for business recording. Write the correct
answer clearly on a separate sheet.

___1. Business recording always stay simple.

___2. Business recording is an optional obligation.
___3. Business recording is for a better clerical analysis.
___4. Business recording is for a better financial analysis.
___5. Business recording is for a better technical analysis.
___6. Business recording makes planning easy.
___7. Business recording may stop violation on tax obligations.
___8. Business records are sources of data for tax obligations.
___9. Easy business is planned without business recording.
___10. Investors can have reports with the use of business records.
___11. One importance of business recording is to report to investors.
___12. Proper business record keeping is against the law.
___13. Proper business recording is mandated by law.
___14. The reporting to investors is made easy.
___15. The reporting is easy for the suppliers.

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 What I Need to Know

It is proper for an entrepreneur to know about keeping good business records.

In this key move you are expected to:
● describe record keeping for business
● identify the benefits for keeping business records
● state reasons for keeping business records

What’s In
Retrace to brace for your business recording pace.
Sequence. Indicate the sequence in column B, with the numbers from 1 to 9
to show the basic order in column A for business implementation. Write each correct
answer clearly in a separate sheet of paper.

A B
a. Arrange activities ________
b. Fix scope ________
c. Handle risks ________
d. Lay specific outputs ________
e. List down resources ________
f. Manage result ________
g. Plot schedule ________
h. Prepare budget ________
i. Set procurement ________

How quick are you in the sequence task? Recording for the business will require
the same quick wit, as you recall transactions in the implementation for recording.

What’s New
Weigh your know-how on keeping records for your home-based business.
Self-survey. Rate yourself as Good, Very Good or Outstanding based on each
question below. Write your answer clearly in a separate sheet of paper.

Questions
1. I can describe business record keeping.
2. I can identify benefits a business derives from proper record keeping.
3. I can discuss the reasons for keeping business records.

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 Whichever answer you have on the questions above; you must be sure about
the necessity of keeping good business records.

What Is It

A Personal Record keeping for your business as an owner,

should also establish a record keeping system for your personal
information.

The term “record keeping” refers to the orderly

and disciplined practice of storing business records.
Record keeping is one of your most important
responsibilities of a small business owner.

https://www.google.com/search?
Record keeping ranges from simple folder q=deped+instructional+clip+art
filing systems to complex on-line electronic
systems. Whether simple or complex, a record keeping system must be easy to use.

Most importantly, the record keeping system you choose must fit your
business needs. The type, size, and complexity of your business, as well as your
available resources, will help to determine the record keeping system that is best for
your business.

Importance of the business record keeping with its Top Reasons;

1. Better financial analysis and management.

You can arrange it from up-to-date follow-ups, invoicing, and on-time
payment for suppliers.

2. Fulfillment of Tax Obligations.

You can keep track on any information and documents for taxes.

3. The reporting to Investors is Easy.

You can provide to yourself as the investor the important information about
the financial status of the business.

4. Business Planning is Easy.

You can monitor if the company is on the right track financially and decide
the next thing to be done.

5. Proper Record Keeping is Required by Law.

You can prepare for legal requirements.

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 TOP THREE (3) KEY POINTS TO REMEMBER ON BUSINESS RECORDING

First is that, as a small business owner you still need to track a

significant amount of information. No matter the type, size, or complexity of
your business, establish, and maintain a proper record keeping system that
is suited to your business needs.

Second is, regardless of whether you use a computer system, you will
need to think about a business record system. There are many software
products to help you keep records for your business.

Third is, you must do a record keeping system or use a combination

and you must start now.

Businesspeople do serious record keeping.

What’s More

You are to do simple recording on your home-based business implementation.

Application. Details on the money and items that goes IN and OUT of the
business are to be recorded in the template, as your transactions. Write clearly and
briefly on a separate sheet. Refer to the examples.

Examples:
A. On October 31, 2020, a payment of Php100.00 was received from a
customer who bought products or got served.
Date Item IN Item OUT Amount IN Amount OUT
October 31, Money products/service Php 100.00
2020

B. On October 31, 2020, a payment of Php500.00 was given to a supplier for

materials bought for the business.
Date Item IN Item OUT Amount IN Amount
OUT

October 31, materials Money Php

2020 500.00
You can do the same now for your simple home-based business.

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 Date Item IN Item OUT Amount IN Amount OUT

If you did the straight recording from each of the actual transactions of your
simple home-based business, this will be your guide in filling out the templates on
business transactions.

What I Have Learned

Avoid getting transactions blurred, so do your record.

With this in mind.

Top reasons on keeping good business records for your simple home-based
business simply means monitoring of the money for profitable use practice
preparing payment for taxes updating yourself as the owner guided setting of
your next action obeying the law for a legal business.

Take the time to review on your simple business recording.

Brief Essay. Based on the simple record of your home-based business answer
each question clearly in one (1) sentence. Write the answers on a separate sheet of
paper.
1. What have you noticed about the money in your business from your simple
financial record? ________________________________________________
2. How much is the eight percent (8%) of your sales for tax practice?
_____________________________________________
3. What do you check first when looking at your simple business record?
_____________________________________________
4. What is your next plan for the business as you see the record?
_____________________________________________
5. Why do you think the law requires good business recording?
_____________________________________________

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 Your being sure about your answer on the questions above is a proof of your
good keeping of business records.

What I Can Do

Application. Compute for the sum and difference of each amount column of
IN and OUT. Write clearly in a separate sheet.

Date Item IN Item OUT Amount IN Amount OUT

+ +

If the amount in, is higher and its difference compared to the amount out is
about twice as much, then your simple home-based business is doing good. If
otherwise, then you must decide on measures to improve your business. Be guided
by your records.

Good record keeping is in the best interest of a business. As a business owner

you are looking for the maximum return from your investment and the maintaining
of good records is part of that equation.

Assessment

Know the record time you can do this!

MULTIPLE CHOICE: Read each item carefully. Write the corresponding letter of the
correct answer in a separate sheet of paper.

1. Business owners have responsibilities. Which is one of those responsibilities?

A. business article. B. business editorial.
C. business in news. D. business in record.

2. A record keeping system must fit your business. Which is different from record?
A. Available business resources.
B. Complexity for your business.
C. Size and type of your business.
D. Weaknesses of the business in practice.

3. Businesses do financial analysis. How is the analysis supported?

A. There is record keeping. B. There is record limiting.
C. There is record margin. D. There is record notices.

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4. A legal business is with tax obligation. How is the record part of it?
A. The law requires keeping of cash.
B. The law requires keeping of gain.
C. The law requires keeping of record.
D. The law requires keeping of stocks.

5. Investor must decide about the business. How is recording helpful?

A. To cover is brief and easy.
B. To keep and fix is as easy.
C. To mark and erase is easy.
D. To report and plan is easy.

6. Each transaction is in record keeping for business. Why is this so?

A. Random and bounded storing of business records.
B. Selective and a casual storing of business records.
C. Temporary and partial storing of business records.
D. Orderly and disciplined storing of business records.

7. It could be a simple or complex record keeping. How to choose?

A. Fits business for brief use. B. Fits business for easy to use.
C. Fits business for one use. D. Fits business for slow-paced use.

8. The business records show the transaction period. How is the period found?
A. check age column B. check base column
C. check date column D. check every column

9. The business receives as part of its operation. How does it receive?

A. Transactions are all in. B. Transactions brings it in.
C. Transactions issue inward. D. Transactions send inward.

10. The business releases as part of its operation. How does it release?
A. Transactions bring out breakeven.
B. Transactions bring out gains or fees.
C. Transactions bring out income or pay.
D. Transactions bring out good or service.

11. Transaction records are for review and update on the in and out in business?
How to do this?
A. A template could be simple for use.
B. A template could be singled for use.
C. A template could be tested for its use.
D. A template could be tried for this use.

12. Overall sum is computed in a period. How is it computed?

A. Amount is added at start. B. Amount is added between.
C. Amount is added by column. D. Amount is added only once.

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13. Computation of the amount is done. Why is it computed?
A. To add higher amount. B. To close which amount is higher.
C. To delete the higher amount. D. To check which amount is higher.

14. Business owners invest in business. Why do they invest?

A. To work out a blank return
B. To work out a maximum return.
C. To work out a non-value return.
D. To work out a void in the return.

15. Records are of the best interest of the business. How is this so?
A. Maintain a bit of business record.
B. Maintain a draft of business recording.
C. Maintain a fixed business record on it.
D. Maintain a good business record for it.

Additional Activities

What do you think of your record time on the assessment?

Set your own record and make it applicable in your daily life.

Brief Essay. Write clearly on a separate sheet of paper for your response.

a. How will you do the practical daily living use of what you have learned from this
module? Include how it will allow you to promote honest and prudent attitude.
Answer aptly in one (1) sentence.

__________________________________________________________________________________

b. Ask-all-You-can about what you took up here. I will write back and post answers
online.

__________________________________________________________________________________

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 Answer Key

What’s In:

6 i.
7 h.
5 g.
9 f.
4 e.
2 d.
8 c.
1 b.
3 a.

References

https://www.ajml.com.au/downloads/resourcecentre/references/operation
almanagement/
https://www.bmgaccountants.com.au/top-reasons-why-bookkeeping-is-
important/
https://www.sba.gov/sites/default/files/files/PARTICIPANT_GUIDE_RECO
RD_KEEPING.pdf