Why is it important for a business to keep financial and legal records up to date?

Record keeping can be a pain to keep up with and traditionally becomes one of the most procrastinated areas of business, but proper record keeping is absolutely necessary, especially if illness should strike a business. If you are thinly staffed, consider using outside accounting services that free you up and allow for smoother transitions in the event of problems.

Make sure municipal and business permits are up to date and filed in such a way that others can find them. In general, filing systems should be kept orderly and easily accessible. Make sure you have a backup person that can access these records at a moment’s notice, or if you have no one onsite that you feel comfortable with, an accountant or lawyer will usually keep and produce records for you for a fee. 

This is critical in the event that an agency decides to audit your business for any reason. Also have some kind of timeline calendar that reminds you of fee and filing dates, and have someone else in your business be privy to this. Late fees for reporting or permits can add up. 

   —Victory