Five Financial Documents You Must Secure to Keep Your Business Safe

Five Financial Documents You Must Secure to Keep Your Business Safe

If you are running a business, it’s essential to have your documents safe from theft or damage. Your accounting department needs copies of all your financial records, including income tax returns and invoices. Your accountants can use document management software for accountants for this important task.

This article will teach you about six documents that you can safely store in document management software, including income tax returns, warranty contracts, payment invoices, billing statements, customer letters. Read on to learn why you must protect these documents.

1. Income Tax Return

Income tax returns are a great way to keep track of your yearly earnings. It’s also a document that can help you file for a refund with the IRS if necessary. That’s why it’s crucial to protect this document. If you’re not sure how to store it, you might want to use software such as cloud storage services to store it, so you can keep it safe from theft or damage. This way, you need not worry about losing this vital tax document because you can always go back to the copy stored in the software. You should not rely on paper copies of your income tax returns because they are more prone to theft or damage.

Furthermore, your accountant can access the same cloud storage services account to access this document. That way, your accountant can work on it with you or independently on an approved device when tax season comes around.

2. Warranty Contracts

A warranty contract is a document that will give you an indication of the services covered by the agreement. You need to keep this document safe because it is the only evidence of the service or service done on your machine after purchase or servicing. It will show the manufacturer’s warranty, date of purchase, and serial number.

The warranty contract is critical to have in case you need to have repairs done on your equipment. This document gives guidelines on the required steps should unforeseen events or wear and tear damages the equipment or cause it to break down over time.

If you lose this document, it will be challenging for you to get compensation for damages caused by a defect in your machine, which can happen at any moment without warning. When this happens, the best thing to do is access the software and print a copy of this document.

3. Payment Invoices

If you work for an organization that issues payment invoices, you need to keep those invoices safe. You can’t just throw them in the recycling bin or trash after they have been issued because there is a lot of useful information on those documents. For instance, if you have not been paid yet, you can use the payment invoice as evidence to take your client to small claims court.

Additionally, payment invoices are a way for you to check if a customer has completed payment for your product or service. If they claim they never received the invoice, you can simply print a copy of their record. You need to keep these documents safe, and that’s why you should use software such as cloud storage services to keep them secure so no other party can steal or damage this data.

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4. Billing Statements

Billing statements also contain some vital information on your company, such as account number and services rendered. When issuing a billing statement, it’s essential to track when you issued this document and when the customer received it. If you don’t do this already, then it might be difficult for you to reconcile your monthly reports by the end of your fiscal year.

That’s why, when storing these documents in the cloud, it’s a good idea that you keep the date of issue and date of receipt as part of the document. This will help you keep track of information, such as whether you have billed your client. If you find out that you have not billed a client yet, you can send another copy of the billing statement to speed up the process.

5. Customer Letters

Another essential document to store in software such as cloud storage services is customer letters. You usually send these letters when your company wants to communicate with customers about changes in policy or procedures. You can send your customers a note explaining that you are canceling their service or increasing the cost of using your services.

When sending these letters, you must keep track of who received them and when that person received the letter. You need this information because sometimes customers will ask for evidence that you notified them about your company’s policy or procedure changes. Keeping a copy of the letter in the cloud will provide you with proof that you did your part to notify your customers about these changes.

These documents contain information about your company. You need to keep them safe in the cloud or secure space for easy access anytime you need it. When storing these documents online with document management software, be sure that they are secure by keeping track of the issue and receipt date for each record, so there is no confusion later down the line.

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