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The 5 Types
of Business
Records
Every Owner
Needs to
Track
BUSINESS
( H T T P S : / / W W W. S D G YO U N G L E A D E R S.O R G / C AT E G O R Y / B U S I N E S S / )
/ SEPTEMBER 19, 2019 by AMANDA
( H T T P S : / / W W W. S D G YO U N G L E A D E R S.O R G / A U T H O R / A D M I N / )

Paperwork, paperwork, paperwork. That’s the last thing you want to do when running your
business.
Given that the IRS can audit your records
(https://www.americanbar.org/groups/business_law/publications/blt/2017/08/06_wo
od/) for years in the future, it pays to have everything ready in case that happens. The
question is, what do you need to keep track of?

Below are five types of business records that you need to keep track of.

1. Legal Documents
Your legal documents are what inform you of what your company is and how it’s
structured. It’s essential to keep track of these in cases where you need to prove to
anyone your company exists and what your role is in it.

This information will include the type of company you have, partnership documents,
sales tax ID, and your EIN.

2. Insurance Documents
Running a business involves a lot of risks. If you don’t carry insurance, then you’re
putting your entire company at risk. This means that you will likely have several types
of coverage when you’re in business.

You need to be aware of what each of these types of insurance is for and how much
coverage you have with each of them. Having quick access to these documents means
you can handle problems quickly.

3. Permits
If you run a local business, then the chances are you need permits to operate. Your
business permits will tell you how big your parking lot can be, the maximum size of
your outdoor signs, what you can do to your building, and type of business you can
operate.

Keeping your permits in order and on-hand means you don’t have to go hunting for
them when someone asks. This can help keep your business running and not shut
down until you find them.

4. Accounting Records
Cash flow rules all companies. This makes it vital to keep your accounting records in
order. If you don’t know how much money is going in and out of your business, then
you run the chance of running out of cash when you least expect it.

These records also include money sent out to your team members. Make sure to find
more info (https://www.paystubs.net) about tracking payments to them and making
sure your staff has all the information they need for their own records.

5. Assets
If you purchase any equipment for your business, then you need to keep an accurate
account of everything you buy. Every year you need to account for the appreciation
and depreciation of all your assets.

This matters when the time comes to sell old equipment. The profit or loss from your
sale will have tax implications the next time you file.

Don’t Neglect Your Business Records

When much of your time is spent growing your business, it can be easy to start
neglecting your business records. The problem is, this can get you in trouble. Make
sure to keep track of everything happening in your business so you can keep yourself
 safe in the future.

Once you get your records in order, you can start focusing on your business again.
Head to our business section to read our latest posts on the subject.

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