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How to keep business records

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Record keeping is a great way to help your business flourish. You can learn things from your past records so you don't make the same mistakes and other things. Record keeping involves maintaining the financial records for the organization but also learning how to store your inventory and record it in the computer. When a company maintains accurate records you are less likely to lose track of monetary transactions along with employee records and many other things. Keeping business records is easy to do if you find a good program to help you out. Programs like QuickBooks are great as they do a lot of the financial tracking you need but you can also understand record keeping by creating an excel file and other things.

For many businesses, record keeping is needed as they have investors and others that are looking for their compensation along with other information about the company. As a manager you are able to see the liabilities and assets you have along with outstanding payments and capital borrowed. It helps you to manage your expenses properly and helps to avoid a lot of the confusion that can arise when you don't care for your companies equities and assets properly.

Large organizations usually have a system in place that you need to follow in order to keep your records correctly. Smaller companies are often told which records they need for their lenders but fail to do much else besides these records. Here are some of the common records you should pay attention to:

  • Articles of Association

  • Memorandum of Association

  • Shareholders records

  • Debenture records

  • Accounting records

  • Employee records

  • Payroll Register

The IRS website can help you to see what type of records must be kept for taxation needs and even legal needs. The Small Business Administration has helpful information regarding business records you will need to keep for all of these needs along with future planning and business strategy needs.

Depending upon the type of business you are running, you will be required to keep very detailed information about your company. For example, sole proprietors are required to keep all income, purchases, records of assets and liabilities, and many other receipts. The gross receipts are easy to keep as they include your total business income. Your purchases may be harder to keep, which is why you should consider separate business bank accounts along with credit cards. Here you can show evidence of the purchase. You might also consider keeping the actual receipt when you purchase things that are considered an expense like water, paper, etc.

Company assets are records that you have which shows things like furniture, machinery, etc. The assets need to have a depreciation log that shows when the item was purchased and how much it has depreciated over the years so you can claim it on your business records. Liabilities are a little different as they show something that much be paid for. All of your invoices and bills of exchanges are considered business records and assets needed for tax purposes.
Excel is a great way to track your company records as it does help you to keep it organized and it also allows you to share the spreadsheets with multiple people, making it easier for you to keep everyone on the same page. There are so many different record keeping software programs out there, that you can easily keep the calculations in order and to keep the business running efficiently.

Keeping accurate records will make it easier for you to understand how your business runs and how you can lay out different strategies to make the company work effectively.

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