7.6 KEEPING RECORDS

Records are documents that belong to the business. Some of them are important. When you start a business, you must learn what records are important to keep. Some important records are:

• ·         Permits,
  
• ·         Contracts,
  
• ·         Receipts,
  
• ·         Communication with customers,
  
• ·         Business finance documents.
  

Records are important for many reasons. Records help you to keep a track of how your business is going. Records will help to solve problems. Records ensure that you don’t forget what you promised your customers.

7.6.1 What Should You Do with the Records?

First, you must know how to find any part of the record when you need it. You must place the records in a place where you can find it easily. It can be a metal box, a desk drawer, a folder, a cupboard or a computer file.

Second, you must put the records in order and keep them organised. When you start a business, there will initially be only a few records. But as business starts going, there will be more records with increasing numbers of customers to keep you busy. If the records are kept in good order, it will take only a little time daily to find any record you may need. But if the records are kept badly, it can take a whole day to find some part of the record that you need. This is an unnecessary waste of time. We should be spending our time on business and not on trying to find misplaced records. For a small business, it may be enough to have a folder with pockets to keep all important business records in one place and to keep them in order. When a business grows bigger, maybe more folders or a metal filing cabinet will be necessary. If you use a computer to keep record, you must learn how to create and use folders for keeping the records in order.

Third, you must prevent the records from getting lost. They must be placed in a safe place. What will happen to the records if a fire breaks out, there is a flood, or a thief breaks in at night and takes your property? A record may be lost simply because you do not pay attention where you put it. Then, you forget where you put it. A simple way to make sure that records do not get lost is to put any incoming records in one box. At the end of the week, you open the box and put the records in order. If you use a computer to keep records, you must also make sure that you still have the records even if the computer gets lost or broken. You can learn how to use computer cloud and put the records there. You can also learn how to use a mobile phone camera to scan paper records.

How would you keep records for your own business idea?