Business Documentation
It is needless to say that everything done in the course of the business should be properly documented.
The need for documentation arises, for example, when you have to enforce an agreement with a supplier or a buyer.Without the agreement being in writing,it becomes more difficult to prove the existence of the agreement in court and also who had to do what under the agreement.You need documentation for preparation of business tax returns and as evidence,God forbid,should you ever be audited by the tax office.
Business documentation can include:
>> Quotations, receipts, invoices and other trade documents
>> Bank forms, loan and security documents
>> Insurance policies and claims
>> BAS returns, income tax returns and assessments and other forms filed with various government departments
>> Share certificates, shareholders’ register, minutes of director’s and shareholders’ meetings
>> Agreements with other parties for provision for goods or services
>> Monthly, quarterly or annual financial statements;management accounts,trading accounts,profit & loss accounts and balance sheets
Whilst most people would be familiar with most of these documents, things can be a bit more complicated when entering into formal agreements with other parties (see also Contracts).
Formal Business Agreements
You should seek legal assistance when you need to enter into formal agreements. The agreements, to be enforceable, should have the intentions of the parties clearly stated and be properly executed.
If you are given a contract by another party, you should have your solicitor review and explain the contract to you before your sign it. Similarly, you should advise your solicitor exactly what you wish to achieve from the agreement before your solicitor embarks on drafting the document (see also Contracts).
It is also important to keep all business documents properly filed in order as you may not know when you may require them again. If your business is incorporated, the Corporations Act requires that you keep all business documents other than financial records for at least 5 years and financial records should be retained for at least 7 years (see also Corporations/Companies).
If you are interested to know something more on Business Documentation and other details,you are welcome to the Commercial Law site.
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