ACC 211 Homework

Keeping an up to date and accurate record of all transactions for a small business is very important. Small businesses need to have a system in place for all record keeping for many reasons. One reason would be to control the creation and growth of records. Although we try to become a more paperless society the amount of paper we use never seems to go away. An effective records management system will limit the amount of copies you have to make, reducing the waste generated. One reason is for small businesses to stay within compliance with state and federal regulations. One will never know if the state will require a small business to recover a document to prove that a certain regulation is in compliance. Another reason would be to minimize litigation risks. Keeping records of all the documents that your employees signed off on for anything from safety requirements to your companies bests practices will save you from any lawsuits in the future with a disgruntled former employee. Keeping good records will also help to keep a good running memory. If your company is successful and start to franchise and eventually go public your records will document that growth and help company see where they have been and where they are going. Good records will also help in finding trends, either they be good or bad trends to predictions for profit margins and sales figures can be analyzed and the probability of a good year or a bad year can be decided upon. Record keeping is important for the life of a small business, and it is important that we all know how to keep good records.