CHAPTER ONE
INTRODUCTION
Background of the Study
The desire to keep and use records of knowledge information for reference and permanent preservation can be licked to the privilege time of human history. History has showed how people the their thoughts and experiences on items at their disposal.
Financial record are established in an organization to achieve specific objectives such objectives are derived from adequate returns on investment and the ability of the organization or its representative to maximally provide social service that would meet the immediate and long term needs of its environment.
In other to actualize these set objectives organization plan and take adequate and efficient record as well as employing the service of available resource (human or non human) towards actualizing their objectives.
A record is defined as information created receive and maintained as evidence and information by an organization or person, in pursuance of legal obligation of business.
Virtually every organization and other well meaning business minded individuals take proper record of its activities. This is to enable them measure the level of the success and failure recorded in an organization at a specified period of time. Consequent upon this, one is keeping records, to know how adequate accurate and reliable are these records, when they are not taken by professional accountancy.
Keeping of records is not only required but also vital to organization. According to Wilson (2005)” accounting is concerned with the preparation of report based on recorded data and interpret the reports. This will help in checking of fraud and irregularities in the financial of bringing accounting record up to data usually leads to committing of errors and fraudulent practices. All organization heeds the services is of qualified financial recorder to achieve is objectives.
Just as there are several organizational models for delivering extension services to the public, there are numbers of ways to finance, those services and to keep track of the money. Sound financial management may be fundamental to success. Poor financial management, on the other hand, often accompanies and contributes failures.
Organization heed to employ the services of professional accountancy in order to,
Keep all accounting records
Set out sound accounting records for staff to follow
Assist them to close the book of account.
Prepare financial report to facilitate climate efficiency in processing management information and controlling of operations. The services of the accountant/financial recorder to an organization and individual include:
Drafting of Financial Statement in co-operation profit and balance sheet for companies.
Preparation of Management Account on a regular Basis
Maintenance of computerized record of clients books of prime entry from the information supplied.
Preparation of necessary financial information
Statement of Problem
The fact that many companies or business does not know the important of accounting/financial record while other knows. The researcher will want to find out whether proper financial record are been kept in the organization.
Some business organizations have been traced to some problems, which resulted to their winding up there are as followings
Lack of permanent and systematic records for financial Transactions.
No provision for the value of assets and liabilities records.
Lack of position in the efficient running of a business over a given period.
Lack of recording and assessment of profit or loss made at any given period.
The researcher will suggest a possible solution to the problems.
Objectives of the Study
The objectives of this study is to make sure the organization keep proper financial record system or practice in Eternit Limited, Sapele.
When this is put in place, the organization action will be able to ascertain whether profit or loss made at particular period.
When proper financial record is practice in the business organization will know the current position of assists and liabilities to avoid fraud, irregularities and errors in the business organization.
1.4 Research Question
To what extent is financial record employed in proper financial record in an organization?
What are the types of financial record maintain in the organization?
To what extent does financial record help in the success of the business organization?
To what extent can be said that financial record help in the determination of financial record of profit made.
Significance of the Study
This study will be of great significance benefit to the management of all small scale business most especially Eternit Limited, Sapele management. The study will also be of benefit to those that want to invents of an organization or for proper financial record in an organization.
1.6 Scope of the Study
The research will limit the study on the important of proper financial records in an organization with special reference to Eternit Limited, Sapele.
The research work does not have hypothesis testing is a descriptive research, since it describes analysis and interprets conditions that are in existence.
1.7 Limitation of the Study
In the course of carryout the study, a lot of problems were encountered by the researcher, they include.
Financial constraint: These prevented the researcher to travel to sources for information needed for the purpose of the study.
Time Factor: Time was really a barrier to the successful completion of this research works, it requires adequate time in order for more extensive and detail investigation to be achieved. At this time of the study, it was quite unfortunate that the researcher has to battle between class activities and the same time sourcing for relevant information at the same time.
1.8 History of Eternit Limited, Sapele
Eternit Limited is a number of multi – national organization with its head office in business and is one of Nigeria’s major producers of high quality fibre cement building materials.
Eternit limited was established in 1974, the company has under group significant developments which enables it to offer a wide range of high quality roofing and caviling sheets and tiles together with a variety of complementary accessories.
The factory is located in Sapele Delta State Nigeria. They manufacture quality roofing and ceiling products which conform to international standards, their range of products covers essentially tiles and light – gauge galvanized roof trusses.
1.9 Definition of Terms
For the purpose of clarity, some terms used in this study are properly explained below:
a. Financial Record: Financial record is therefore the process of recording and reporting of financial transactions including the origination of the transaction, its recognition processing and summarization in the financial statement. Financial record can also be defined as the process of keeping source document of an organisation in a proper and orderly manner.
b. Organisation: An organisation can be defined as a business firm that is establish for the purpose of profit making.
c. Record: A record is defined as information created, received and maintained as evidence and information by an organisation or person, in pursuance of legal obligation of business.
d. Financial Accounting: Financial accounting is that branch of accounting concerned with classifying, measuring and recording the transaction of a business.
e. Statement of Financial Position: This is a financial statement that shows the assets and liabilities of an organisation at the end of a financial year (usually 12 months). The statement of financial position is not part of the final account of an organisation, but it is a part of the financial statement that shows the position of the organisation in an accounting year.
