Improper accounting records and non-compliance with global standards severely compromise organizational and national financial health. This study evaluates how defective financial data distorts the judgment of decision makers, disrupts policy formulation, and hinders sustainable national economic development. Employing a mixed-methods research design, data was gathered from 200 public and private sector financial experts using structured questionnaires and archival data analysis. The findings reveal a significant negative correlation between poor book keeping and macro-economic stability. Statistical analysis confirms that flawed reporting structures increase public fund misappropriation, deter foreign direct investments (FDI), and cause severe policy failures. The study concludes that transparency in financial reporting serves as the bedrock for sustainable national wealth. It recommends strict enforcement of International Financial Reporting Standards (IFRS) and statutory penalties for accounting non-compliance.