We have all heard the saying “The Devil is in the Detail,” but few of us realize how true it is. A proper system of record keeping and documentation can benefit your personal finances and career. At tax time many of us partake in a frenzied search to acquire receipts. Establishing a protocol of filing and recording will save time in the long run and vastly reduce stress and cost during an audit.
Establishing best practices and policies for your business will also pay off when seeking to expand or refinance. Financial institutions look favorably upon a well maintained documentation system. Bankers admit that even if they know a business sis doing well, the documentation is needed to secure financing.
In putting your process together some of the following will be of assistance:
- Software—comes in all price ranges and level of detail—find one that will work for you.
- Business Manager—whether a free-lance bookkeeper, paid employee or accounting service, the investment in this service up front will benefit in the long run.
- Business Management Courses—knowledge is power—short courses and seminars are a good investment in your business.
- A business plan that includes best practices for documentation. It should include a section on what file and what to share with financial and legal professionals assisting you.
- Security plan to ward against hacking, theft, natural disaster or human mistake.
For more information on how to create a record keeping and documentation plan contact your accountant, financial institution or attorney.
Published in MN Valley Business Magazine, August 1, 2017
This information is general in nature and should not be construed as tax or legal advice.