Bookkeeping is boring - and critical.
Without good bookkeeping, you will be vulnerable to major problems:
faulty financial statements
faulty analytics
faulty tax returns (or pay your tax pro to clean up the mess)
potential lost cash collections
potential lost billings
facilitate embezzlement and other forms of theft
inadequate expense controls
payroll hassles
So there will be a series on bookkeeping issues and excellence.
Following up on Part 1, it is important to keep some information offsite so you can get back in business quickly.
A full list of equipment, with brand name, equipment model, serial number, and related warranty information is important. Also the name and phone numbers of which ever company sold the equipment.
That list, by the way, should have been a part of the file of your insurance agent, as another backup and to facilitate an insurance claim.
Photos of the equipment
Same for automobiles and trucks, including a copy or scan of the title work on each vehicle.
The time and energy necessary to keep these files is small compared to a reconstruction after a disaster.
The terrible tragedy in California reminds us that small businesses must be prepared for disasters.
The most precious asset? The hardest to replace? Records and documents.
Some suggestions:
Keep an extra laptop, loaded with all licensed software, offsite.
Cloud software offers some security, but you may be offline for a long while.
Backup hard drive files on a portable hard drive, place in a safety deposit box or at home or both (remember the bank is only open 40 hours a week).
Certain key records, like an employee roster with phone numbers, should be kept offsite in old fashioned paper.
Electricity and the Internet may be down for extended period of time. Buy and charge some small power packs designed to charge smart phones.
Keep a log book with important passwords and combinations. Keep it secured offsite. This is not just for disaster prep.
Keep a list of key phone numbers, including customer service numbers, helplines and banking phone numbers offsite in paper or a spreadsheet.
Documents not requiring high security can be emailed to yourself as attachments. Even if access is not immediate you will have access to them on-line.
Have extra building keys secured offsite.
If you home is in the same danger zone as your business you may need a third party to keep some of your backups. In sealed envelopes of course.
If your home is in the same danger zone as your business you may need a different place for storing backup material.
Also, your lawyer, insurance agent and accountants serve as a backup for some but not all documents.
