How Long Do You Need To Keep Business Records?

Businesses face many challenges but the one you never want to have to face is having to rebuild your records due to some unforeseen event. Having solid backups of your records is a must otherwise you could find yourself wasting precious resources and man hours having to reconstruct everything you lost. In addition you might find that your records are needed by your bank, your state or even the IRS should a problem occur. The following is a list of records and how long you should keep them. Even if you are no longer in business. Some records need to be kept indefinitely. Records such as those of past employees may once in a while need to be dug out to help someone else. It could be that they have applied for a new job or unemployment benefits. You just never know what they might be needed for so don't get rid of them. Such records include: All corporation documents such as certificates of incorporation, your corporate charter, constitution and bylaws, minutes of board of directors meetings, deeds and easements, stock and stock transfer records, retirement and pension records, labor contracts, and license, patent, trademark and registration applications and any court documents or judgments. Financial documents that need to be saved indefinitely include income tax reports, annual financial statements, books of accounts, and income tax payment checks plus all documents relating to fixed assets owned by the company and depreciated over time. Some records only need to be kept for a six year period instead of indefinitely. Such records include: Sales records such as invoices, monthly statements, shipping papers, bills of lading and customers purchase orders. Company purchase records such as purchase orders and vouchers need to be kept. In addition you need to keep all travel records such as expense statements and receipts. Financial records that need to be kept include personnel and payroll records, such as payments and reports to taxing authorities, including federal income tax withholding, FICA contributions, unemployment taxes and worker's compensation insurance as well as all bank reconciliations, voided checks, and check stubs. And finally some records only need to be kept for the relatively short period of three years. These records include: Monthly and quarterly financial statements plus any subledgers you may have. It's not just a good idea to keep back up records it is a necessary part of doing business. You really can't afford to have something happen to such records. There are plenty of ways to keep back ups. Everything from stowing copies of your records in an off site storage to using a file management company. There is a solution out there that you can be happy with. Take the time to find it and then develop a process to regularly back up your files and store them for safekeeping. You might find that one day such a practice could literally save your business.



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How Can Your Small Business Survive Today's Economic Crisis??

You need immediate relief, and no one is talking about the elephant in the room: CASH. So, to address the immediate actions you can do right now are: 1) Stop using credit for anything. There's a reason the saying is CASH is king. Pay cash for everything right now, and avoid credit like the plague. 2) Have an honest conversation with your employees. Freeze their salaries for the next year. It is a sacrifice for them, but it keeps their jobs, and once things smooth out, you can look at ways to reward their sacrifice and loyalty. 3) Don't just control costs; aggressively do so. Every paperclip you can re-use, do it. Every ream of paper, every pen ... office supplies are one of the largest areas of shrinkage. Lock up the supply closet. 4) Go to your suppliers, tell them you intend to pay cash for your goods, and negotiate a discount on the products in return. It's time to return to the days of 2%/10, n/30. Suppliers are also so strapped for cash they will work with you. 5) As you expand your services, be careful not to expand your operating budget at the same time. Carefully weigh the opportunity costs if you see it will require an investment to offer a new service. 6) Continue to save. Every check, even if it's only $5, save it. Encourage your employees to do the same. This is about keeping cash. 7) Move some of your investments to CD's. If you need an amount of money, you can get to it, and it still earns interest in the meantime. (Disclaimer: This is my personal opinion and not professional advice.)



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About the Author:Michael is the owner of FreedomFire Communications .... and author ofBroadband Nation. Michael also authors Small Business Resources Cafe with resources, tools, tips, & insights for small businesses. The Cafe is always open. So .... grab a cup of Joe & sit awhile!

Simple Advice For Small Businesses In Tough Times

Here's a survival guide for small business with a list of things you need to concentrate on .....

1. First attitude .... be strong do not look like you are about to hang yourself

2. Perseverance .... be prepared to stay the distance

3. Opportunity cast your net around .... use successful contacts to garner extra business they after all should be happy with you

4. Weigh your options .... carefully consider anything you do before you do it so you do not spend unnecessarily

5. Use your network .... more than ever before ask people for business

6. Do not be afraid to ask for business .... get you attitude right about getting business

7. Negotiate with creditors .... give better payment terms to reduce costs

8. Negotiate with debtors .... give better payment terms to reduce costs

9. Cutting costs .... cut all unnecessary costs and get quotes on all costs to see if you can shave ask current suppliers to give you a better deal

10. Sharing the burden making people responsible .... get your staff working to save their jobs they must contribute

11. Buy in from staff .... get them using their contacts too

12. Do your homework better than ever before .... go and relook at everything you do with your staff have planning sessions you will be surprised what they know and where to save

13. Do not take unnecessary risks and think quick rich

14. Stick to basics

15. Stick to knitting

16. Plan your business and keep everyone informed especially your banker

17. Downgrade where possible

18. Image is not important survival is

This is indeed a shake-out time. As Jack Welsh says: "During uncertain times we weed out the weak players and the strong ones widen the gap".

This is a time to work on making your business better - not to dig in. You are obviously taking this proactive step. This means making the business more lean, but mostly focusing more on your customers and making sure you address their wants and needs. Focus on looking at your business through their eyes.

Be very efficient in your advertising, look at it as an investment - don't do anything unless it shows an adequate return. That means you have to test and measure - ask your customers how they learned about your company. Invest more in advertizing that works. Try different ads and test which one works best. Internet based businesses tend to focus only on internet marketing - try also doing it the old-fashioned way - many good prospects haven't yet become 100% digital.

Ask your existing customers how you can better serve them - many will give you valuable insights. Follow-up with customers - collect their contact information and send them newsletters including special loyalty offers.

The idea is to outsmart your competition so you can survive when they can't and then thrive when the economy recovers.

Article Source:
http://www.bestmanagementarticles.com
http://small-business-management.bestmanagementarticles.com

About the Author:
Michael is the owner of FreedomFire Communications .... and author of Broadband Nation. Michael also authors Small Business Resources Cafe with resources, tools, tips, & insights for small businesses. The Cafe is always open. So .... grab a cup of Joe & sit awhile!