Types of Records Every Business Needs to Keep

When you decided to pursue a career in business you probably weren’t thinking about all the records that you need to keep. However, even if it isn’t your passion, you still need to keep records of various aspects of your business in order to be successful in the business world. As you learn the fundamentals of running a business, make sure to include the upkeep of these records.

Financial Records

First and foremost, you need to be keeping very careful track of your finances and any money that comes in or out of your business. Having meticulous financial records will help you to have a clear understanding of your business’s financial situation. It will also help you to always pay your taxes accurately and take advantage of any deductions that can help you save money. Your financial records give you a thorough accounting of the business you have done and how successfully you have been able to perform so you can make pointed improvements.

Incident Reports

Things can go wrong in even the safest environments, and when problems do occur it is important that you keep a record of them. Sometimes incidents will be related to an accident in the workplace while other records will be about interactions between employees or customers. OSHA requires businesses to keep a log of serious injuries on the job. By maintaining a thorough record you can protect your company and also make changes to improve working conditions as you learn from problems in the past.

Employee Records

There are many documents that go into hiring, and that’s for good reason. You should keep track of all employee records, including signed documents proving they are an employee as well as documentation of their performance, good or ill, to back up your later decisions on giving raises or terminating the employee. Federal agencies may also contact you for proof in a lawsuit. The length you keep these records depends on their kind, so check carefully before throwing anything away!

Keeping records isn’t the most riveting part of a job, but it is a necessary part of a running business. Keeping records is always helpful and in some cases, it is legally required. As a business owner it is your job to make sure that you are keeping accurate records and that you ensure they are safely stored.

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