KEY FINANCIAL MANAGEMENT CONTROLS

12.1 BOOKKEEPING AND FINANCIAL

ADMINISTRATION
In terms of the bookkeeping and financial administration needs of Poultry House Project CC, the business needs to
keep and maintain bookkeeping and financial administration records as noted below:

 Records of all sales made together with copies of invoices issued

 A record of all the purchases and expenses of the business
 Invoices for all the business purchases and expenses
 Details of any amounts that are taken for personal use by the project members
 Copies of the bank statement

It will also be important for the business to maintain a record keeping system of the following documents:

Document/ records Details

Business Registration Documents The founding statement of the Close Corporation in terms of the CK1

Statutory Documents  IT 14 Income Tax

 IRP 3
 Employees’ Tax Certificates, that is; IRP 5 and IT3
 Tax Clearance Certificates
 Financial statements - in terms of the income statement and balance sheet

Financial Documents and Records  Sales analysis reports

 Expense analysis reports
 Financial statements
 Fixed Asset Register

Bookkeeping Records The financial records essentially include the following:

 Sales day book

 Purchases day book
 Cash receipt book
 Cheque payments book
 Petty cash book
 General Journal
 Nominal Ledger
 Accounts Payable Ledger
 Accounts Receivable Ledger
 Payroll System

Financial Statements  Statement of Financial Performance (Income Statement)

 Statement of Financial Position (Balance Sheet)
 Cash flow Statement

Other Records  Business minutes for meetings

 Business letters to clients, suppliers and other stakeholders
 Other documents