An entrepreneur and former hoarder tells businesses what documents to save
For one entrepreneur, being forced to downsize in an apartment meant going through records and figure out what documents to save for his small businesses. As J.D. Roth explains to Entrepreneur Magazine, many times document management is the key for businesses to stay afloat, since all businesses trying to get off the ground need to watch every penny.
One reason small businesses lose funds due to poor personal record keeping is by deducting business expenses from taxes. By carefully keeping track of anything that can be considered a business expense, small business can save money.
As Roth explains, “You want to be able to prove to the IRS that you really did buy the computer you claimed as a business expense, to tell the repairman that the computer is still under warranty or to show the insurance company you owned the computer that was stolen.”
By keeping track of W-2 forms, small businesses can avoid triggering an audit from the IRS. Comprehensive records of invoices can also help a business to avoid payment disputes.
As Roth found out, having documents scanned meant being able to work in a smaller office and save money on storage fees. As explained by Roth, “scanned documents work as well as hard copies for everything except your will, and the paperless route is clutter-free.”
With organization so high up on any business’ priority list, using document scanning services to help with small business document management can help keep finances in order.
When Roth reached that point, he burned his now-unneeded papers in celebration.