Introduction
Good record keeping is essential to efficient business operations for any SMEs. It is also critical for all legal related issues. Setting up a record keeping system is not exciting and doing paperwork can be time consuming. But creating and maintaining a well-organized system is easier than fixing a poor one.
Some of the records that are very essential to most SMEs are classified below:
Accounting and bookkeeping records
- Sales and expense information
- Income statements
- Balance sheets or Statement of Financial Position
- Cash flow statements and other financial statements
Bank records
- Bank statements
- Bank reconciliations
- Notices from and to your bank
- Deposit slips and any loan related notices and documents.
Contractual agreements
- Contracts
- Equipment leases
- Purchase agreements
- Sales agreements
- Joint venture agreements and other contracts.
Corporate records
- Incorporation Documents such as Certificate of Registration/Incorporation, Memo and Articles of Association etc.
- Shareholder Minutes and Consents
- Board Minutes and Consents and amendments to the various corporate documents.
- Partnership agreements where necessary
Correspondence
- Important letters sent and received by mail and important email that you want to make sure is not lost and should be kept in hard copy.
Employee records
- Employment applications
- Actual employment offer letters
- Employee handbook or policies
- Performance appraisals
- Employee attendance records
- Employee resignation or termination letters
- Any settlement agreements with terminated employees.
- Staff Pension Records
Forms used in the business
- Local purchase order
- Invoice and official receipts
- Goods Received Note etc.
Intellectual property records
- Trademark applications
- Copyright filings
- Patent filings and patents
- NAFDAC approval
- Confidentiality or non-disclosure agreements.
Marketing and advertising records
- Marketing brochure
- Print ads
- Web banners
- Radio jingles and other marketing materials.
Permits and licenses
- Permits
- Licenses or registration forms needed to operate the businesses.
Stock records
- Stock Ledger where all stock and other securities transactions are recorded
- Copies of stock certificates.
Tax records
- Income Tax
- Withholding Tax Records and Credit Notes
- PAYE Records and other tax related matters.
Conclusion
The above records are to be kept depending on whether the SME is a business name or a limited liability company. The records for the immediate past year and current year must be kept handy, while older records can be archived.
Tomi Omojuwa
tomiomojuwa@gmail.com