Simple Record Keeping for Small Business

Record keeping is an essential part of staying organized within your small business.

In this article we will discuss different tactics you can use to improve your small business record keeping.

simple record keeping for small business

Simple Record Keeping for Small Business: 5 Tips

1) Use a Document Management System

A document management system is used to keep track of any important documents that flow through your business.

As your business grows, it is likely that the amount of documents you need to keep track of will grow as well.

There are many great options for managing your documents, but the current best option is to go paperless using digital document management software.

2) Be Sure To Back Up Your Most Important Documents

It is important to take the time to back up any essential records or documents within your document management system on a regular basis.

Having a back up of your most important data will ensure that you don't lose anything if you were to be affected by a data breach, or any other security threat to your business.

3) Understand How Long You Need To Keep Certain Documents

It is important for small business owners to keep certain documents for a certain amount of time for the purpose of tax filings and audits.

Having an organized paper trail with proof behind your actions will allow you to breeze through any potential issues with the IRS.

Further, the IRS states that the statute of limitations for an audit is three years.

Therefore, it is important to keep your necessary documents for at least three years.

4) Create a New Digital File Each Year

Creating a new file for your record storage each year makes it incredibly simple to keep all of your records organized.

Also, this type of document organization will make it super easy to delete old document files that are no longer needed.

5) Use Accounting Software That Generates Records

Accounting software will help you keep track of all your business records in one place, especially if that software also allows you to digitally capture and store documents straight to your computer.

The current most popular pieces of accounting software are Quickbooks, Freshbooks, and Xero.

Simple Record Keeping for Small Businesses: Conclusion

Running a small business can be extremely challenging, especially if you are growing at a rapid rate. Without an experienced bookkeeper to help you keep track of your records, things can get out of hand pretty quickly.

As your business expands, so will your need to keep important business documents safe and secure.

Using a document management system, regularly backing up your documents, and understanding how long you need to keep certain documents for, are just some of the many ways that you can keep your records organized and your small business running smoothly.

How Noon Can Help Your Business Thrive

Noon Bookkeeping is an outsourced bookkeeping solution for business owners consisting of a team of certified, expert bookkeepers ready to help you organize the finances of your business.

Noon can handle all of your bookkeeping in one place so that you can focus on running and growing your unique business knowing that we’ve got your finances handled.

Learn more about how Noon can help you take control of your finances.

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