The retention of records is very important for small business owners. They not only keep the records but also help to retain the ones that are required. The aspects retention of records is determined only by the revenue service guideline. This is done in the interest of the companies.
Why is it important?
The business records retention schedule is very essential for the simple reason that the small business might have to suffer from shortage of space. The businesses actually generate three different types of records: one is the income, the other is the expenses and the third is the income and capital expenditures.
- The small business also needs to keep the records for major capital purchases. This will determine the depreciation of tax purposes. The records include both the date and the place of the purchase.
- It also has the description of the item and the amount paid for the purchase that is made. Therefore it is very important to keep a track of this record that will enable the business owners to know their progress and identify their problems.
- The small business owners usually employ those who are other than the owners and the partners of the business to keep the records. They rely on certain experts who will recommend handling the records in a very safe and secure manner.
The business record retention schedule policies are the ones that will improve the efficiency and the productivity of the business. They will have an increase in the day to day operation but with a reduction in costs. There are many types of records that should be retained indefinitely. The general requirements of the electronic storage system ensure an accurate transfer of the hard copy to the electronic media. This procedure allows o test the storage system and that too periodically. They conduct an audit and this has to comply with the guidelines.