How to Keep Records for a Small Business
If you are still new to managing your own small business, you are surely not yet that aware regarding the things that you have to keep in mind to assure that you will really be successful in this path that you have chosen.
Knowing how to keep records for a small business will surely bring you a long way if you are aware of the ways to do it right.
For those who are still neophytes when it comes to running small business enterprises, they might not be that aware yet as to how to keep records for small business. It is a must that you maintain a complete archive of the transactions that happen in your business as well as other kinds of deals, not just with taxes as the sole reason but more to properly budget, market and plan business growth. If you will keep a commercial data and you have the ability to analyze them, you will determine the real standing of your business and when the year ends, you will also pay the taxes you have right on time.
Buy Index Tabs and Binders
Although it is good to keep record database in your computer, it will also be advisable if you have hardcopy of all documents. To do this, you might need to purchase some three-ring binders as long as index tabs that will be used to label things. The offices of most State “Secretary of State” will require you to keep such records so that the corporate status of the business will also be maintained. This also comes in handy in case you would want to keep business file copies which you can use for daily business purposes.
Website of Secretary of State
You can also visit the site of Secretary of State and find out what business records are required to be kept, as stated by law. However, remember that this site is not that of US Secretary of State, which is really entirely different. Each state of the US has its own “Secretary of State” which keeps all the commercial and business records. He or she is also responsible for publishing the rules and regulations of the state.
Records to Keep
Now that you are in the site of SoS, the next thing to do will be to know which records must be kept. Here are some of the common ones yet check if they are also required in your state.
- Accounting records
- Company transactions
- Annual reports and state filings
- Company’s insurance policies
- Business contracts
- Permits and applications
Hiring a Professional Accountant
If you are not that confident with keeping the records, you can also hire an accountant to take all the pressure from you. The really good accountants will be able to come up with the basic system of record keeping that will surely be perfect for your business line. Although business owners can handle the daily bookkeeping all by themselves, a licensed accountant can be relied on when it comes to handling the more complicated tasks.