A financial record is a documented account of an individual or organization's financial transactions. It includes details such as income, expenses, assets, and liabilities. These records help track financial performance and are essential for budgeting, tax preparation, and financial planning. Maintaining accurate financial records is crucial for making informed decisions. They can be organized in various formats, such as spreadsheets or accounting software. Regularly updating these records ensures compliance with regulations and provides a clear picture of financial health, aiding in strategic planning and investment decisions.