Record keeping may not be the most glamorous part of being a small business owner, but it might just be the most important. Good record keeping will help you stay in business and could help increase sales and efficiency. The team at Broussard Poché, LLP knows that good records help you analyze the current state of your business and where it’s headed in the future.
You or someone in your business should have an intimate knowledge of the way your record keeping is handled. It’s also a good idea to have more than one person know the system and be able to jump in if something unexpected happens.
The system should be simple to use, and show information accurately and consistently. And it’s crucial that the information in your business’s record is easy and straight forward for someone to understand.
If setting up a system on your own sounds a little intimidating there are systems small businesses can purchase. Some are generic and will fit for just about any business. Others are designed for specific industries, like retail for example.
If all of this sounds like a bit much for your or your staff, you can always hire a financial professional to help maintain your records. You can hire a company that specializes in payroll services and your hired team can handle the paperwork and withholdings for your employees.
Records Work for You
The important thing to remember is that your records are working for your business. They measure cash on hand and can even predict future income. Taken together, properly maintained records will be invaluable if your business ever needs a loan.
Also, keep in mind what proper record keeping means to your employees and customers. Records provide income tax and payroll information. They can also help determine best pricing practices for your clients.
One of the most important functions of business records is to prepare your business for filing tax returns. It’s a good idea to set things up in a way that is compatible with the demands of the IRS. The professionals at Broussard Poché, LLP suggest that you follow a retention schedule.
Even if you do decide to try your hand at record keeping, you may want to enlist the help of an accountant at tax time and perhaps to offer some analysis of how your finances are coming together.
If you need any help preparing records, researching the proper software or getting your taxes in order, contact Broussard Poché, LLP.