Every business has a legal obligation to keep records of their transactions. There is no set format that must be adhered to but at the very least records of all sales, expenses and purchases should be kept.
Under sections 199(2A) and 199(1) of the Act, directors of the companies are required to maintain a system of internal accounting controls and keep proper accounting and other records that will enable the preparation of true and fair financial statements
Aside from the obligations, keeping good records is an essential part of running a successful business. Good keeping records provide directors an accurate financial information which will help them in making decision for the company. And this means better decision making can be made and improvements in cash flow and profitability can be made if necessary.