Every business owner must understand the Importance of documentation for smooth operations in future. Documenting everything helps in avoiding many risks and analyzes data for taking many strategic decisions.
Importance of Documentation
You may be new to business and it is possible that you are occupied with lot of things with very less time available. But still take out 15-20 minutes every day if you want to survive in the longer run.
Minimum Documentation for Business
In early stages of business it is not possible to write everything and every activity but this is what can be tracked as a list of minimum decimation for business in order to ensure smooth operations.
Documentation of Employees
Documentation of employees is very important not only for the company / business but also for the career of employee. Create a standard Employee Joining Form with his personal and professional details. Create a unique employee ID for all the employees join organization. This helps in tracking all employees even after they resign.
Track Employee Attendance
Track employee attendance data to create salary slips and to resolve any dispute in future. For example there is an inquiry from legal department asking about the status of employee on a specific date. You can just check the register and let them know. There can be incidents when employees themselves come and want to know about their leaves. If records are available then it is very easy to check and give confirmation. Attendance data also helps in tracking an employee leave behavior.
Track Employee Performance
Make a standard employee performance sheet for small business (if it is a small business) and start maintaining entries. This will help in setting performance parameters for business and assuring company growth charge goes upwards direction. Employee performance data is also helpful in taking fare decisions related to appraisals and promotions.
Maintain Company Accounts
Maintaining company account plays critical role in managing finances for business. Whenever you spend money document every single penny spent because this will help you control expense. Also record earnings from all sources to ensure correct financial status of company is available. If you want to check current status of company then this report will help. Salary Paid, Computers Purchased, Stationary, Payments received etc. everything should be listed the same day because in longer run it will be very tough to recall resulting loss to business. A profit and loss account will help in taking strategic decision about the business.