By August 8, 2020
Categories: Bookkeeping, General
I’ve recently had the pleasure of connecting with another bookkeeper, Vanessa and it’s an honor to have her on as a guest blogger this month. Vanessa is doing great things in the bookkeeping profession and focuses her work with mom bloggers. Today she is going to give us some great insight into The Importance of Keeping Proper Records for Your Business.
Every small business needs to keep track of their records for their business. This can be anything from finances, maintenance, customer information, vendor information, employee information, and so on. There are many different systems available to help you keep track of your small business records. Some of them are online and some you can implement right in your own office.
Why is this important for your business to keep records?
Proper record-keeping is essential to running a successful business. Maintaining proper records of your customers, employees, and company information will ensure that you can quickly and easily find proper documentation for certain situations.
If a customer comes in and states you overcharged them, then you want to be able to quickly access their records and resolve the issue.
When your employee wants to know why their vacation days aren’t correct, again you should be able to quickly find out what the issue is with the proper documentation. So how do you go about implementing proper record-keeping?
Find a System That Works for You
As I said there are many different ways to organize your business records. Having an organized filing system in your office makes all the difference. All of your important documents should be filed away in a locked filing cabinet, securely stored on your computer, or stored online.
With all of the privacy rules, the last thing you want is important papers floating all over your desk. The same goes for private financial information for your business. That is not something that you want everyone to see.
Keeping all of your records organized in files in a filing cabinet or on your computer is a must.
Different methods of keeping records organized
As a business owner, you need to decide which method of keeping your records organized works best for you. Besides choosing between paper filing or digital filing, there are different ways to organize your files such as alphabetical, numeric, alphanumeric, geographical, chronological, subject-wise, and more.
Here is a great article that goes over the different various filing classification systems. Once you decide which method and system you are going to use you can dig into how you are going to organize your files.
Online Filing System
If you choose to keep a paper copy of all of your files, it is also a good idea to have a backup copy online or maybe you prefer to be completely online. As we all know, disasters strike, and having an online filing system of all your important documentation is very important. Don’t worry there are ways to ensure your digital information stays protected and secure.
If you are wondering how to create an electronic filing system then here are a few for you to check out.
Resources for Organizing Your Small Business Records
How to Organize Your Small Business Records by dummies
Record Keeping for a Small Business by Small Business Association
Small Business Self Employed Record Keeping by the IRS. Here is a list of the more detailed sections from the IRS website.
- Why should I keep records?
- What kinds of records should I keep?
- How long should I keep records?
- How should I record my business transactions?
- What is the burden of proof?
- How long should I keep employment tax records?
Outsourcing Record Keeping
As with anything, there is also an option to outsource your record-keeping for your business. There are others that are more experienced in this department and can assist you in organizing your business records.
The benefits of outsourcing this task are not only that the person is more experienced but they will most likely provide systems that you wouldn’t personally have thought of. They will have tried and true methods that have worked with other businesses. Outsourcing this task to a third party can save you a lot of time and headache.
Hiring a virtual assistant can also be a lifesaver. Someone that is there to organize your business online, to check your emails, manage your social media, invoice customers, and so much more.
Hire a Bookkeeper for Your Financial Records
One of the most beneficial tasks you can outsource is your business’s bookkeeping. Hiring a professional bookkeeper ensures that your business’s finances stay organized. Without proper bookkeeping, your small business could become like most others and not make it purely based on running out of funds.
Proper bookkeeping can be the difference between your business’s success and failure. Hiring a professional to handle all of the transactions that come in and out of your small business can lift a burden off of you. This gives you more time to focus on growing your business and reaching your goals.
The Next Step to Organizing Your Business’s Records
Now that you understand how important it is to get your small business’s records in order, the next step is to decide which method and system are right for you. Check out the resources provided and get started on streamlining your business’s records.
Look into hiring a virtual assistant and a professional bookkeeper to completely take over those tasks and make your business more efficient.