Contents - Tanzania Revenue Authority

6.0 BUSINESS RECORDS
PART SIX
In the last section we underscored the need for transparency
in managing your business. This essentially emphasizes the
need of keeping proper records. This section shall dwell much
more deeply on record keeping.
6.2 WHAT ARE RECORDS?
• A record is anything that contains information for one to
remember.
• In business, records refer to documents for
•
remembrance/reference.
Documents for remembrance are written specifically to
enable the stakeholder remember or create in his/her
mind the real picture of the flow of the business.
6.2 THE NEED FOR BUSINESS RECORDS
• Proper records will reveal the actual profit of the business.
• Records assist in tracing the flow of business and its
corresponding income.
• Records assist in confirming or giving testimony to a
business transaction, for example, procurement of good
without receipts, or buying illegal property.
• Proper records enable the business stakeholder to know
his real income and determine the actual taxes he/she has
to pay.
• Records enable the entrepreneur to determine his/ her
needs from business investors, from within or outside the
country. For example, getting loans or business skills from
various institutions.
Every business man/woman is required to keep records and
books of accounts of his/ her business. Records should be
kept within the prescribed time frame. Failure to keep proper
records is illegal.
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