Small business owners have a lot going on. Running a business involves wearing many hats and keeping track of many different things. An important part of this is maintaining all of the right business documents.
No matter what kind of business you run, business documents are an essential part of your operations. They make sure your business is operating legally, they keep you organised, and they can protect your business. This guide will cover some of the most important types of business documents you need to maintain.
What are Business Documents?
Business documents are any kind of written records containing information about your business. These documents are necessary for your business to operate legally and stay organised.
Without the right business documents, your business might not be operating in compliance with local laws and regulations. Not having the right business documents will also make it very difficult to stay on top of your business operations and understand how your business is performing.
Common Types of Business Documents
Any business needs to maintain a clear record of certain business documents. Here are some of the most common types of documents that you should have.
Company Registration Documents
When you start a business, you’ll need to register it with the CIPC. This registration process involves some important business documents, like a company registration certificate, a share certificate, and a Memorandum of Incorporation (MOI). You must always have these business documents on hand.
Contracts
Contracts refer to any legal documents that outline the terms and conditions of an agreement between different parties. As a business owner, you’ll be involved in all kinds of contract agreements. These could include employment contracts, contracts with vendors, service contracts, or lease agreements.
Business Plan
Your business plan is one of your most important business documents. This is a document that outlines your business goals, details, strategies, financial projections, and more. You create a business plan before you start the business to act as a roadmap for how your business will operate. A solid business plan can help you secure funding, keep your business on the right track, and make better business decisions. A business plan is essential for starting your business, as well as referencing during the later stages of your business operations.
Employment Agreements
If your business has any employees, you will need to maintain employment agreements. This is a legal requirement. Employment agreements refer to legal contracts that outline the terms of an employment relationship between an employer and an employee. These business documents include details about pay, job responsibilities, benefits, and termination clauses.
Compliance and Regulatory Documents
There are various regulations and laws that businesses must comply with. This includes general business laws, like tax and labour laws, as well as industry-specific regulations. You must be equipped with all relevant business documents to ensure you meet these requirements. For example, businesses that sell food will need a business license and a Certificate of Acceptability. Depending on your type of business, there are probably a few specific documents or licenses you need for legal operations.
Financial Documents
Keeping clear records of your business finances is essential. This is necessary for staying tax compliant, as well as for understanding your business’s financial performance. Important business documents related to finance include income statements, balance sheets, your general ledger, invoices, and cash flow statements. You’ll need these documents to understand your business’s financial health and to make more informed financial decisions.
Business Reports
Business reports provide insights into the internal elements of your company. They’re important for understanding how the different elements of your business are performing. This can be used to make more informed business decisions. These business documents could cover things like sales figures, business transactions, or reports on employee performance.
Business Agreements
Agreements are any type of business document that establishes the terms and conditions of a business relationship between different parties. As a business owner, there are all kinds of contractual agreements you may be involved in. Some common examples include partnership agreements, franchise agreements, or agreements you have with contractors. Whatever the case, it’s important to understand the details of these business documents and to keep clear records of them.
Keeping track of the relevant business documents is essential. These documents are designed to protect your business, help you make more informed business decisions, and ensure you’re compliant with all legal requirements. Make sure you have a good system in place for storing and maintaining your business documents. Being well-organised will make your life as a business owner a lot easier.
