Running a business in Orange County, California is not an easy task. There are many things that you need to do. In order to avoid problems, you need to manage your records properly. A lot of business people do not prioritize corporate record management, as they find the task too tedious. Here are a few tips on how to make record management a lot easier:
1. Business Expenses & Personal Expenses Should be Kept Separate
Many businesspeople have difficulty differentiating between which expenses are from the business, and which are from personal expenditures. For example, some businesses have only one vehicle, which they use for both personal and business purposes. Sometimes, it might become tricky to identify which of the expenses related the use of the car are under business purposes and which are for personal use. In order to do this properly, your company should have a clear definition of what qualifies as a legitimate business expense, and what does not. Your corporate records should reflect this properly. A corporate attorney in Orange County can help you with this categorization.
2. Document All Business Expenses Properly
What most businesspeople do to keep track of their business expenses is make a list of purchases. Sometimes, they rely on the list of purchases on their credit card statements (if they use credit cards). Sometimes, it’s enough to do that, but if you want to be completely organized, you’ll need more than just a list. Specifically, you must collect receipts.
Every time you make a purchase for your business, ask for a receipt. It doesn’t matter if you are making a small or large purchase, make it a habit to ask for a receipt no matter what. Even small expenses can add up, and you need to document these in your corporate records in California. Whether you are using your credit card, issuing a check, or paying cash, always make sure to get the receipt for your business related expense.
Moreover, don’t just collect receipts, label them. It is important to label receipts, because some businesses give receipts that have nothing on them except the date that you made the purchase and the amount it cost you. When keeping corporate records in CA, you need more detail than this. Label your receipts with what specific item you purchased, and even for what purpose you purchased it. Every time you get a receipt, label it and then include it in your business records.
3. Your Business in California Should Have a Separate Bank Account
It is imperative that you have a separate bank account for your corporation in California if you want to have good business record management. Although the fees for a business bank account are way higher than those of a personal bank account, it is a worthy investment. Having a business bank account helps keep your personal and business expenses separate. You must make sure that all your business revenues are deposited in the business bank account. Moreover, all business related expenses must be withdrawn only from your business bank account.
4. Have a Corporate Lawyer in Orange County, CA Help You
Corporate attorneys in California can help you keep your corporate records in check. They can also help you in many other aspects of your business, such as legal issues. A corporate lawyer can efficiently manage your corporate records, so that you can avoid unnecessary problems in the future.