Small Businesses Get New Capital, New Business, Manage the Added Paperwork

As small businesses seek to achieve sustainable growth through securing new capital, they need to take into account the additional filing that will need to be processed and not got lost under the additional paperwork. According to an article recently published by the Huffington Post here, the holiday season represents a time when businesses will generally be seeking new capital, anticipating an increase in sales. Important initiatives to maximize on holiday opportunities include ordering additional inventory, increasing marketing efforts, and employee salaries.

“The search for capital can seem overwhelming for small business owners. However, it tends to be a much smoother process if you are organized in advance, especially when it comes to paperwork.”

Items to keep track of in advance include:

  • General company information
  • Federal tax ID number
  • Official start date
  • Business type (LLC, sole proprietorship, etc.)

Ownership Information

Make sure that your records are accurate on which individuals own what percentages of the company. For partners owning 50%, you should have copies of driver’s licenses, social security numbers, and resumes, and you should ensure that this information is stored securely and access is given only to authorized responsible individuals. The best way to manage this information is with an automated document management system.

Finances

Detailed records for gross annual sales, and credit histories of the business entity itself as well as the owner, should be kept up-to-date and on file. Credit reports will contain information on your bill payment history, loans you’ve taken out, debt, where you live, if you’ve been sued, filed for bankruptcy, and if you’ve ever been arrested. There are a number of options for getting your credit score; the primary credit reporting agencies are Equifax, Experian, and TransUnion. Though these are the reporting agencies, you do not contact them directly for your score. Usa.gov has instructions on options for getting your credit score, and once you’ve got your credit score it is crucial to keep that information safe, with the best option being to use a document management system.

Legal Records

Relevant legal information which you should keep on file includes tax liens (if applicable), judgments, bankruptcies, etc. You’ll also want to have your business license handy, articles of incorporation, commercial lease, information on any third party contractors you use, and business tax returns.

Legal teams must employ adequate document security in order to protect case and client confidentiality as well as maintain regulatory compliance. eFileCabinet’s document management software features an advanced security infrastructure that safeguards data with role-based security, administrator granted access permissions, and military-grade file encryption.

Miscellaneous Information

As you seek to gain additional capital to increase your end-of-year revenue, it would also be a good idea to have references, landlord contact info, and franchise owner information. These individuals can attest to your good character, reliability, and trustworthiness. Having an up-to-date copy of your business plan can help to clearly establish the value your company provides, primary audiences, and the returns you’ll get on products and services. Your company cash flow might also be interesting and relevant to potential investors, and keeping a copy on hand will help you be maximally prepared.

Management Tools

In order to keep all the types of documents described in this article organized, easily accessible, and secure, it is recommended that you use something a little more modern than a metal filing cabinet. A proper document management system can solve many potential headaches in a way that paper filing simply can’t match. We have already covered a long list of features and benefits in the first part of this article, but in this section we’ll outline even more.

It’s important to reiterate the fact that we still acknowledge the need for paper. Walking into a meeting with all the necessary papers in hand is still probably the best way to have a one-on-one business meeting. However, when it comes to managing documents for your business or personal life, paper documents tend to complicate the process, and document management software (DMS) provides a more affordable, scalable, and customizable solution.

DMS provides advanced security features, customizable organizational structure, mobile accessibility and sharability, and built-in legal compliance. To learn more about how to keep your business documents organized, fill out the form on this page to have one of our experts contact you.

By | 2016-12-15T11:59:04+00:00 December 18th, 2015|
Subscribe to the Blog That Solves Office Problems

Free Demo

Request a Demo

Discover eFileCabinet

Chat with us about your needs and we’ll create a free guided test drive just for you.

Demo Form Arrow