Financial records are essential documents that document an organization’s financial activities and transactions. They provide insight into the company’s financial performance, allowing stakeholders to assess profitability, liquidity, solvency, and more. Businesses must accurately record their finances in order to comply with government regulations, minimize potential errors, and make informed decisions. Accurate recording of financial data is also required for taxation purposes. Financial records can include ledgers, statements, invoices, tax returns, receipts, bank statements, accounts payable/receivable registers and other supporting documentation. These documents enable a company to track its income and expenses, calculate its profits or losses, and help inform strategic business decisions.