Keeping records from the outset is vital for your business

Follow these tips to keep records of your business:

Do not complicate things. The simpler your records are, the less likely you are to make mistakes. It also decreases the time it takes to update your data.

Update your data frequently. Be sure to update your records regularly so you will not miss anything.

Do not forget the details. Include specific details about your business. It is important to keep track of all your business operations, even for small businesses.

Include the following in your system for keeping records of your business:

• A business checking account to keep track of your business transactions.
• Your monthly income or how much you earn each month.
• Your monthly expenses. Record how you spend money every month.
• The inventory. It’s important to keep a record with the value of stock, including all products and supplies.
• Keep tabs on your assets (depreciation schedule). Over time, your assets will be depreciated. You must keep track of changes in value.
• Control of income (income statement). This will help you calculate your gain or loss for a specified period. Learn how to prepare statements.
• Cash flow. Keep track of the ins and outs of cash to manage their finances.
• Balance sheet. This is important to calculate the net worth of your company.

Locate personal information in your business by talking to the sales staff, human resources, accounting and external service providers. This way you can get a complete overview. Each type of information has different types of risks.

Pay particular attention to records of personally identifiable information: Security numbers, credit card information and general financial and other sensitive data. These are most commonly used by thieves to commit fraud or identity theft incurring data.

If you found this blog helpful you can read more business tips and advice articles in our help section.