files

Keeping Old Business Files

Posted on 12. Jun, 2013 by in Business

As a business owner, you are responsible for a lot more than making money. Every business generates some form of paperwork and there are several reasons why you should be keeping those records around for as long as possible. You should start from the first order you end up writing, to the first bank account and statement and any debtors or creditors you may have had. Regardless of the size of your business, you should be concerned about needing those records sometime in the future.

As much as technology has changed, you would think that everything would be computerized and there would be no further need for paperwork. In the unlikely event that your computer or media storage devices break down, you can always turn to the hard copies for reference. If it becomes too much and you run out of place to put them, you can always consider storing them at an off-site location if necessary.

The law may require that you save your records for a certain amount of time, while the IRS may stipulate the time you need to hold on to those records, there is no reason why you can’t hold it longer. Some business owners tend to retain their old files just to help them remember what they were doing at a particular time. The thought process is that if comparisons need to be made, it would be easier.

The day may come when you are ready to sell your business and either retire, or move on to something bigger and better. Good record keeping is designed to allow business owners to track their financial position. Although computer generated reports are supposed to keep things simple, there are times when you could be asked to back them up. With the actual paperwork in your possession, that task could be easily accomplished.

Then we have entrepreneurs that believe in progress, but refuse to accept computers in their business. These individuals will be quite content to track everything on paper, whether it is a payment, collections, or ledger transactions. Some would suggest that they are borderline hoarders, but of course that would be their opinion. The problem with these business operations is the fact that sooner or later they will run out of space.

With all that paper on hand, business enterprises may need to think about Storage Units at Fishers, just to keep things safe and secure. By storing all this extra paperwork off-site, the business is effectively providing an alternative form of security, just in case of a fire or some other unexpected disaster. And finally, most reputable off-site facilities, like the Storage Units at Fishers, usually have insurance, just in case something goes wrong at that location.

No comments.

Leave a Reply