Record Keeping for Startup and Growing Businesses

Business record keeping can be difficult to stay on top of and can be a real problem if not done correctly. Here are some tips to help you get a handle on things.

Good record-keeping practices are necessary to comply with various laws, and to operate your business properly. You need to establish a system where you can file records so that they can be easily and efficiently retrieved.

Below is a way to organize your important company records. You can combine or subdivide categories, depending on the nature and extent of your business - and remember to keep hard copies of important e-mail documents. The bottom line: record keeping can be difficult to keep up with, and it can prove to be a real problem if it's not done correctly.

• Accounting and bookkeeping records. These records include sales and expense information, inventory, ledgers, income statements, balance sheets, cash flow statements, and other financial statements.

• Bank records. These records include bank statements, cancelled checks, bank reconciliations, notices from and to your bank, deposit slips, and any loan-related documents.

• Contracts. These records include all contracts you have entered into, including real estate leases, equipment leases, purchase agreements, sales agreements, joint venture agreements and work-for-hire agreements.

• Corporate records. If your business is a corporation, these records include articles of incorporation, bylaws, shareholder minutes, board minutes, state filings, action of incorporator, and amendments to the various corporate documents. If your business is not a corporation, other documents relevant here include partnership agreements and the owners' LLC documents.

• Correspondence. These records include correspondence sent and received by mail, and may also include faxes and important e-mail that should be retained in hard copy.

• Employee records. These records include completed employment applications, employee offer letters, employee handbooks or policies, employment agreements, performance appraisals, employee attendance records, employee termination letters, W-2s, and any settlement agreements with terminated employees. Read Establishing Key Employee Records for a good overview of the kind of documents you should maintain in each employee's file.

• Frequently used forms. You want to build up and maintain a host of standard forms that you use frequently in the business. These forms can include a standard purchase order, sales agreement, offer letter to new employees, and employment application.

• Intellectual property records. These records include trademark applications, copyright filings, patent filings and patents, licenses, and confidentiality or nondisclosure agreements.

• Marketing and advertising records. These records include marketing brochures, print ads, Web banners, text or radio ads, and other marketing materials.

• Permits and licenses. These records include permits, licenses, or registration forms required to operate the business under federal, state or local laws.

• Stock records. These records include the company's stock ledger (where all stock and other securities transactions are recorded), copies of stock certificates, options and warrants, and copies of all securities law filings.

• Tax records. These records include quarterly and annual federal and state income tax filings, W-9 filings for independent contractors, records supporting tax filings, withholding tax records, and other tax-related matters.

For additional advice on how to get a handle on your business records, read the 60-Second Guide to Retaining the Records Your Business Needs.

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