| From your organization's infancy to going public, your | | | | your balance sheet. Just always remember the simple |
| record of documentation should be complete and | | | | rule that whatever comes in has to be matched by |
| thorough. In the beginning you might wonder why you | | | | what goes out. |
| should document the 2% raise you gave your | | | | In that all important file cabinet should also be instruction |
| bookkeeper or why you reprimanded your sales staff | | | | books, warranty information, and owner's manuals for |
| for failing to answer by the third ring. The answer is | | | | all equipment you purchase, even if the equipment was |
| that, though you might not question these decisions | | | | free or a gift. This can be your central location for |
| now, someday you will. And someday you may need | | | | software licenses, serial numbers, and office furniture |
| to explain and justify these decisions to others. | | | | warranties. Everything from the ceiling fan to the office |
| Documenting from the start is a health and safe habit | | | | copier should have the receipt, serial number, and |
| to form. | | | | warranty information located in an area where it is |
| One of your highest priorities should be to document | | | | immediately accessible. Many businesses spend |
| are areas of personnel or human resource | | | | needless dollars replacing equipment that is still |
| management. All employees, even though you may | | | | covered by a warranty and having the necessary |
| have known them since kindergarten, must have an | | | | documents can save you money in the long run. |
| application and/or resume on file. Because you know | | | | One thing that many entrepreneurs frequently forget |
| everything about them does not mean that your future | | | | to save is schedules, appointment books, and time |
| employees, managers, and investors also know them. | | | | cards. Schedules and time cards are essential event |
| It is the first step in building a trail of documents that | | | | of pay or commission disputes; they are your first line |
| shows your business' growth and development. | | | | of defense. Also, saving appointment books or |
| Following, each employee should receive an annual | | | | computerized calendars can help you track sales data, |
| review which is added to their personnel file. This is | | | | customer service efforts, and schedule timely |
| simply good business. Your business is going to have a | | | | follow-ups. |
| long life that will outlive your short-term memory and | | | | Of course, the advantage is to keep as much of your |
| performance appraisals will give you a base-line to | | | | records as possible on your computer. A CD-ROM |
| determine employee growth as well as performance. | | | | takes up a lot less space than file folders full of papers |
| Another area that may seem obvious is all your | | | | and legally, computerized records not requiring |
| financial transactions and decisions. With audits and | | | | signature are equally acceptable. Unfortunately, there |
| reviews always a possibility, no financial transaction | | | | will always be the necessity for that file cabinet for |
| should be left undocumented. This is sometimes the | | | | your hard copies. Security for these documents is |
| most challenging task but in many ways the easiest of | | | | essential and access should be limited to the business |
| your responsibilities. Because we file taxes quarterly | | | | owner or primary manager. |
| and yearly, most business owners are always on their | | | | In the beginning these things are easy to overlook |
| toes when it comes to fiscal recording. But remember | | | | when you are flush with your first successes and |
| to keep the same diligence when it comes to petty | | | | things are more intimate. But, as I said, documentation is |
| cash, postage, and other incidental transactions. The | | | | a healthy habit to maintain so starting to document |
| book of stamps, weekly payment to the newspaper | | | | from your first steps will ensure that your business will |
| carrier, and boxes of thank you cards can seem like | | | | not only make history but will have it's own history well |
| small expenses but they add up and will throw off | | | | documented. |