Are you starting up a small business? It’ll be hard work. 19% of all small business owners work over 60 hours a week.
But do you know what type of paperwork you’ll need to keep? If you’re going to put in the hard work and effort into creating your business, you need to make sure that you’re doing it right.
With many legal implications associated with many pieces of business paperwork, having the right documents for your small business is essential.
So, what small business paperwork will you need to keep? Here’s everything you’ll need to keep thorough records of in your new business.
Where to Keep Your Small Business Paperwork
In your small business, you’ll deal with a lot of paperwork. Much of the paperwork you use will be of no relevance to anyone outside of your business. Once a task is completed, you may not even need it yourself.
There are some pieces of paperwork though which do need to be kept, and there are certain files that should be kept under lock-and-key.
The type of paperwork you should consider filing in a locked cabinet or safe include contracts and agreements, and anything that holds personal data about your employees on it.
For everything else, make sure that you have a filing system that is straightforward to follow and keep your paperwork in date order.
What Small Business Documents Need Keeping?
You will need to make sure that you keep hold of your corporation paperwork and seal. This will usually have been given to you by your lawyer when the company was first established. You’ll need this paperwork if you ever bring anyone else onto the board of directors.
You’ll need to keep employee personnel files. Keep this locked away and filed in alphabetical order. In these files, you should keep any recruitment documents, emergency contact details, and any other documents such as appraisals, and paperwork from any disciplinary proceedings.
You should keep a full record of all payroll information. This will be essential for tax purposes and this must be kept accurately. You can keep this in the form of a spreadsheet on your computer.
Accounts receivable and accounts payable are essential information that you need to keep track of. Without this, you will lose track of your money. You’ll also need this as a reference for completing your tax returns.
Keep all financial records. This includes bank and credit card statements. You’ll need this to help balance your income and expenditure.
If you spend any money in the form of petty cash, you should make sure that you track this spending. It may be tax-deductible, and it’s certainly something that should make your expenditure balance sheet.
Keep it Organized
Keeping small business paperwork well-organized will save you time and energy in the long run. Get into the habit of filing your paperwork as you go, that way, when it comes to balancing the books and filing your tax returns, your job will be so much easier.
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