When you operate any type of business, be it the smallest startup out of your home office, or the largest international organization, one of your biggest challenges is likely recordkeeping. Keeping adequate records is time consuming, tedious and the requirements and regulations seem to change daily.
Despite the difficulty in keeping good records, the payoff is huge--making it an important part of maintaining your business. When you have things properly documented, you’re protected.
Suppose an employee has a complaint regarding how he or she was compensated for hours worked. If this disagreement turned into a lawsuit, you need time and attendance documentation to make sure the case is settled in your favor. You need to be able to prove the employee worked the hours you said he did and took breaks when you said he did. In addition, new employee forms must be filled out properly to assure i-9 compliance (which is enforced by the U.S. Citizenship and Immigration Services). Your records need to be able to back you up in court.
When tax time comes, the only way you, or your accountant, can safely file taxes in a favorable way is if you have been a responsible record keeper. The IRS isn't lenient with businesses that do not keep good records of their expenses, especially if the business plans to claim any of these as deductions on the taxes. Passage of the Affordable Care Act has meant ACA Compliance (enforced by the IRS) is vital too. The list of ways that good record keeping can benefit your business goes on and on. Record keeping usually involves payroll, accounting, agreements with vendors and contractors, and possibly other records too.
The reality is, keeping records in a way that the courts will support is a challenge. You may wish to utilize a paperless system and scan as many documents into a cloud-based system as possible. That way, if you require a certain form or document in the future, you can access it with just a few button clicks. Even if your system isn’t perfect, you can rest easy knowing that the information is available somewhere, if you find yourself in a bind and need to dig up specific records to protect your business. Remember, there are as many recordkeeping systems as there are types of businesses--finding the right one for your company may just take a little time and effort.
SourceOne Payroll offers a variety of services to allow business owners to do what they do best. We offer help in payroll management, HR services, hiring services, and more! And importantly, we stay on top of rules and regulations so that you don't have to worry. Would you like to talk to us about a personalized solution? Call us at 1 (888) 622-4746 or fill out our quick contact form right here!
