Financial records are documents that provide a detailed account of an individual or organization's financial activities. These records include items such as bank statements, invoices, receipts, and tax returns. They help track income, expenses, and overall financial health, making it easier to manage budgets and prepare for audits. Maintaining accurate financial records is essential for both personal and business finances. They serve as a historical reference for financial decisions and are crucial for compliance with tax regulations. Properly organized records can also assist in identifying trends and making informed financial choices in the future.