GUIDE TO SMALL BUSINESS RECORDKEEPING. To make your business #CPAPOWERED, call today and let s get started.

Transcription

1 GUIDE TO SMALL BUSINESS RECORDKEEING To make your business #CAOWERED, call today and let s get started.

2 When starting a small business, taking the time to set up your recordkeeping system properly, right from the beginning, will save you time and money down the road and could make the difference between success and failure. planning as well as bookkeeping and payroll processing. questions your return. planning opportunities. documents and information. or become incapacitated.

3 TABLE OF CONTENTS COST

4 BASIC CONSIDERATIONS and cons of each type of system in light of your business needs and resources. CONVENIENCE AND FLEXIBILITY To keep up with your recordkeeping, it s important to build a system of a mouse via encrypted or a secure portal. When stored in the Cloud or a secure portal, you can work on them from home, the airport for business recordkeeping in your state and/or within your industry. best suits your needs. 2

5 RELIABILITY protocols for setting up and maintaining them. They are not susceptible to easily damaged or destroyed, redundant backups are generally easily made and recovered. SECURITY AND RIVACY Identity theft, fraud, privacy law violations and numerous other crimes have been enabled by electronic recordkeeping systems. Even some of the most sophisticated electronic security systems have been compromised. customer s records. Electronic records can be kept secure when proper measures are taken to protect privacy, but this is an entirely different depend solely on your electronic recordkeeping systems vendor to ensure the security of your electronic records. STORAGE longer you re in business and the more you grow, the more burdensome the space requirements for paper records. Many businesses resort to offsite records storage both to save space and to mitigate the risk of records being which is labor intensive and costly. COSTS The cost of electronic record storage has become highly affordable should still be kept in paper copies, but the vast majority can be digitized. 3

6 FILE LOCATION AND ACCESS CONTROL common pitfalls. STANDARD ROTOCOL person s innovation soon becomes another s frustration. Set a standard CENTRAL LOCATION location that can easily be accessed without being dependent on a should be kept on a shared server or Cloud provider s system rather LIMIT ACCESS business purpose for doing so and security protocols should be set up is that a date and time stamp log is automatically generated each time unusual activity. 4

7 SAFE DEOSIT BOX and titles and original business documents such as articles of incorporation, corporate resolutions, bylaws, partnership agreement, minutes from annual could be delayed in emergency situations, keep copies in a clearly marked paper FINANCIAL OVERVIEW With your recordkeeping system in place, prepare a procedures manual to include the location of important documents as well as insurance policy debts, including mortgages and loan documents. Give a copy of this manual to 5

8 WHAT TO KEE AND FOR HOW LONG of storing old documents either in paper copies or electronically can become While your recordkeeping system will be unique to your business, certain subjects are There may also be various legal requirements for record retention and this guide is not meant to provide legal advice. Consult with your attorney when applicable. ACCOUNTING ACCOUNTING Accounts ayable Ledger 7 Bank Statements 7 Accounts Receivable Aging Reports 7 Budgets 3 Accounts Receivable Invoices 7 Canceled Checks 10 Accounts Receivable Ledger 7 Accounts Written-off 7 Authorization - Accounting 5 Canceled Dividend Checks Cash Book Cash Disbursement & Receipt Record Balance Sheets Cash Sales Slips 7 Bank Deposit Slips 3 Charge Slips 7 Bank Reconciliations 7 Charts of Accounts 6

9 ACCOUNTING ACCOUNTING Check Register Expense Reports 7 urchase Order 7 Financial Statements Subsidiary Ledger General Ledger Investment - Sales/urchases Trial Balance Journal Entries Vendor Invoices 7 etty Cash Records 7 Voucher Check Copies 7 7

10 CORORATE RECORDS CORORATE RECORDS Amendments Contracts After Termination Annual Reports Contributions 7 Articles of Incorporation Correspondence Accounting 5 Audit Internal 6 Correspondence General Audit Reports ublic Dividend Register and Canceled Dividend Checks Board of Directors Committee Election Records Board of Directors Minute Book Bylaws Financial Statements Organizational Charts Capital Stock Ledger artnership Agreement Capital Stock Transactions Stockholders Minute Book Charter Stock Transfer Records 8

11 FIXED ASSETS FIXED ASSETS Depreciation Schedule roperty Appraisals Inventory Records roperty Register lans and Blueprints lant Cost Ledger Records for roperty Subject to Depletion HUMAN RESOURCES HUMAN RESOURCES Accident Reports Settled 7 ension lan Agreement Attendance Records 7 5 Expiration/Settlement 7 Employee Medical History 7 Employment Application Not Hired 3 Family & Medical Leave 3 Garnishments erformance Record After Termination 7 ersonnel Files After Termination 7 ersonnel Files Current Employees Safety Reports 5 Sick ay 4 Vacation Files

12 INSURANCE INSURANCE Automobile Insurance Claims 10 Fire Inspection Reports 6 Disability Insurance Claims Contract After Termination 7 Insurance Appraisals 6 Expired Insurance olicies 10 Safety Records 6 LEGAL LEGAL Bill of Sale Leases/Canceled 10 Business ermits Licenses Claims and Litigation Mortgages Contracts Notes Receivable Canceled 10 Copyrights atents Correspondence Legal Stock and Bond Record Deeds/Titles Trademarks - Registered 10

13 AYROLL AYROLL Checks - ayroll 7 Commission Reports Salesperson 6 Employee Withholding Exemption ayroll Records After Termination Contractors 3 years from date of completion of Contract ayroll Register 4 Time Reports 7 Employee Tip Substantiation 3, ** W-2 Forms Vacation/Sick ay 4 TAXES TAXES Canceled Checks Tax ayments Income Tax Returns Correspondence Tax Inventory Reports Depreciation Schedules ayroll Tax Returns FUTA/FICA/Income Tax Withholding 4 Sales Tax Returns 11

14 MISCELLANEOUS MISCELLANEOUS Receiving Documents 10 Title apers Vehicle Operating and Maintenance 2 * = ermanent Record. Recommended document retention times from The Record Retention Guide, Massachusetts Society of CAs, Inc., ** As long as the contents there-of may become material in the administration of any Internal Revenue Law. SETTING U YOUR BOOKKEEING SYSTEM software or from the Cloud. However, before you set up your system, you ll want to talk use. information on your business and will save you time in the long run. If you plan to manage could prove to be more strategic when seeking advice and easier when it comes to closing 345 Commercial Dr Savannah, GA info@arkincpas.com 12

15 #CAOWERED

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