The study sought to establish The Effect of Financial Records Management on financial reporting in organizations. The research was carried out using descriptive, analytical design and explanatory basing on the literature available to obtain quantified and qualified data 133 respondents expected to provide data. Data was collected by use of a selfadministered questionnaire, and interview guide. Quantitative data was analyzed at univariate level basing on the mean and frequencies, bivariate level using correlation coefficient and multivariate using spearman’s rank correlation with the help of Statistical Package for Social Sciences (SPSS). Qualitative data were analyzed by content analysis by composing explanations and substantiating them using the respondents’ open responses. The study found that revenue and expenditure accounts play a major role in ledger accounts. For ledger accounts to be effective, revenue and expenditure accounts must be well prepared to limit chances of negative financial performance at Kenjoy supermarket in KampalaUganda. It found that an improvement in keeping and preparing purchases and sales ledgers can result in improved financial performance. It also found that Kenjoy supermarket keeps purchases and sales ledger, cash book, revenue and expenditure accounts, statement of income and balance sheet. The research concluded that Kenjoy supermarket continues maintaining cash books because they keep track of the daily transactions made within the business this helps to determine the level of profitability from period to period and also reduces embezzlement of the organization’s funds hence leading to the growth and development of the company. Therefore, the researcher recommended that a basic record keeping system, whether on paper or an off-shelf computer software program, — should be simple to use, easy to understand, reliable, accurate, and consistent and designed to provide information on a timely basis.