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In this article, I share the ten most important business records you need to keep in your business.
Financial Statements
Your financial statements, such as bank statements, balance sheets, and cash flow statements, provide a clear picture of your business’s financial health. These records are important in helping you understand the state of your business and to make strategic decisions. Also, they are required by the Corporate Affairs Commission (CAC) when filing annual returns.Tax Records
Tax compliance is a non-negotiable requirement in business. To ensure your business is compliant, keep detailed records of your VAT returns, Company Income Tax filings, and other tax-related documents. These records ensure you avoid penalties from the Federal Inland Revenue Service (FIRS) and may help you qualify for tax deductions.Employment Records
If you have employees, it’s important to maintain accurate records of all your employees. Such records will include engagement status, employee profile, payroll information, tax deduction forms, insurance and pension (if application). The Labour Act in Nigeria mandates these records, and they help manage your workforce effectively.Contracts and Agreements
One of the things that show you’re a serious entrepreneur with eyes on growth and sustainability is how you handle contracts and agreements with clients, suppliers, and partners. These define the terms of your business relationships and ensuring that there are even records in the first place and then keeping these documents will help protect your interests and ensure you have a reference point in case of disputes.Business Licenses and Permits
Another set of records you need to keep for your business is your business licenses and permits. These include your CAC registration certificate and permits from other government regulatory agencies. Operating without them can lead to severe penalties, including business closure.Sign up for the Connect Nigeria daily newsletter
Inventory Records
If your business deals in physical products, it is important to maintain accurate inventory records. These records help you track stock levels, manage reorders, and prevent losses due to theft or damage. Inventory records also provide insights into your best-selling products, helping you make informed purchasing decisions.Sales Records
Sales records are another important record that will help you in your business. This is because they provide you with a clear understanding of your revenue streams and customer behaviour. Keeping track of sales invoices, receipts, and transaction histories allows you to analyse trends, manage customer relationships, and identify growth opportunities. These records are also necessary for accurate tax reporting.Management Decisions and Strategies
If you see a future for your business, it is important to ensure that key management decisions and strategies are documented. They provide a roadmap for your business’s growth. These records help track the effectiveness of your strategies, offer insights for future planning, and ensure continuity if there’s a change in management. They also serve as a valuable reference.Loan and Debt Records
If your business has any loans or outstanding debts, it’s important to keep detailed records of these obligations. This includes loan agreements, repayment schedules, and records of any collateral. These records help you manage your cash flow, plan repayments, and avoid defaulting on your obligations, which can have severe legal and financial consequences.Customer and Supplier Information
Finally, maintaining detailed records of your customers and suppliers is important for managing relationships and ensuring efficient operations. These records would include contact information, transaction histories, and communication logs. Having accurate records of your customers and suppliers helps in negotiations, repeat business, and customer service.Register to attend the CN Business Mixer
Concluding Thoughts
As an entrepreneur, your business records are more than just paperwork—they are the foundation of your business’s success. These ten records are must-have as a business. By having them, you’re not just staying organized, you’re building a robust framework that will support your business’s growth, ensure compliance with regulatory bodies, and prepare you for any challenges that come your way.Featured Image Source: GDPR Informer
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