When you are running business, you need to be aware of several vital matters. These usually include proper management (in all aspects – e.g. financial, employment, and operational) and client communication. Additionally, you should hold on to important documents since you never know when they might come in handy.
The question is; do you know which paperwork is essential to your company? Well, you may already have an idea but, then again, here is a refresher on the topic.
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- Insurance
Apart from the contract between you and the insurer, you must keep claims (after a case settlement) for ten years. Other papers related to liabilities and coverage plans include group disability, safety, fire inspection, and accident reports, wherein the first two needs storing for eight years and the next two for six years. Finally, any expired policy requires keeping for four years.
- Corporate
Typically, general company documents involve charters, organisation bylaws, current agreements or contracts, minute books, patents, pension and retirement record, tax returns, and deeds. Of course, you should also hold on to the working reports (proof that you attended to it) of these papers.
- Accounting
This category usually includes cashbooks, auditor reports, financial statements, depreciation schedules, account charts, journals, ledgers, and fixed asset details, which you have to store for an indefinite period. On the other hand, you should keep cancelled payment vouchers and checks within eight years, while monthly trial balances and expenditure records for six years. Finally, you have to store your employees’ time cards and earning logs for three years.
- Daily Operations
The paperwork under this section typically involves purchasing, sales, receiving, and shipping. The first two transactions consist of orders, invoices, requisitions, and contracts, which you need for three years. As for the last two, these include freight bills, manifests, cargo reports, and export declarations, which you have to retain for four years.
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Other than what the aforementioned, you have to hold on to more essential business documents. For more ideas about this topic, including legal aspects, check out the other pages on this website.