A business record keeping system exists for a number of reasons.
It is a key part of making sure that the business is fully compliant with the law and that the accounting process is simplified.
Identify which documents are records
Not every single document used is regarded as relevant for reporting purposes. It’s key to develop policies for what constitutes a record. These typically include all financial records, registration documents or business permits, etc.
Store records electronically
By creating folders it becomes much easier to store the relevant records. Petty cash, utility payments, HR, Payroll and suppliers are just a few examples. It’s vital to be as specific as possible when allocating folders. This way there is no room for confusion.
Send all recorded information to your bookkeeper
Do this once you have collected all the relevant data and stored it in the right way. To save time, the more efficiently you sort all data, the better it will be for you. Your bookkeeper won’t have to waste any time, which will end up costing you more.
Review the information
You need to take some time to review and compare. By comparing reports from previous months you can view how much progress has been made by the company. If there are any glaring items you have a chance to catch them sooner rather than later.
Use the information to guide decision-making
After comparing, you can make the relevant decisions. If you need to switch to a cheaper supplier in order to cut costs, you need to weigh this with the chance that it could potentially lower quality. If there are ways to counter this, then your business record keeping system will indicate this.