It is clear that keeping records has to be done constantly, as transactions occur.
However when the transactions are actually recorded in the ‘books of account’ depends on when you need the information. While all of us would like to be able to produce a financial statement at any point in time – at the touch of a button – that isn’t really attainable.
Who is going to use the financial statements?
Presenting inaccurate financial statements to investors isn’t going to be helpful. And sophisticated investors may quickly see that your statements are inaccurate – just by looking at them.
Do you actually understand what the financial statements can tell you?
If you don’t understand or know how to use the financials you might want to consider whether there are there other – more readily available business metrics – that give you a give a pretty good snapshot of where you’re at?
If your company is in this position you may be better to do a stellar job of keeping records and do the formal bookkeeping less frequently. Of course you will have to perform the following functions more frequently: