Tag Archives: policies

Organized Business Records Save Time and Money

Here are some suggestions to help you master the art of documenting and organizing your business now and in the future.

  • Document policies and procedures. Write down daily responsibilities, skills needed to complete tasks related to these responsibilities, and the location of all paper and electronic files. Appoint and cross-train backup staff to ensure these daily tasks are done.
  • Document your succession plan. It may not be for another 10 or 20 years, but documenting your succession plan is critical for both you as the owner and for your employees. Consider how much longer you plan on owning the business and who you have in mind to take over after you leave. If you currently don’t have a successor in mind, document your plan to either train or find this person(s).
  • Document your tax planning strategy. Be aware of possible tax incentives, such as credits for hiring certain workers and accelerated depreciation available for acquiring business assets. For example, for asset purchases, retain receipts and record the purchase details. These details include the type of equipment, the acquisition date, the amount of the purchase, the date you began using the equipment, and a schedule of related set-up costs.
  • Organize your daily documents. Organize your desk by shredding documents with sensitive information and scanning older papers into computer files. The most efficient method is to scan, file, and shred as soon as you are finished with a document. If you don’t have time, consider assigning document organization to specific employees and making it a task to be completed on a daily basis.

You’re busy, and you may feel that organizing your records will take more time than you have available. But spend a minute and consider how using these organizational tips may save you not only time, but money as well.

California’s Sneaky Revision of Workers’ Comp Law

The government enacted 900 (yes, you read that correctly) new laws for 2017. One they snuck under everyone’s nose is a revision of the very expensive workers’ comp system (AB-2883 Workers’ compensation: employees).

Here is what they changed. You now must be a 15% owner of your corporation, partnership or LLC to be exempt from the worker’s comp system. In addition, you have to sign a form, under the penalty of perjury, that you meet this rule and are exempt. If you are a general partner or managing member of an LLC, you are exempt. In fact, with a LLC, which has become the most common form of business entity in California, you have to not only be a 15% owner but also managing member of your LLC. This makes you more liable under other laws for the operation of the LLC.

Californians will not be aware of this until they go to renew their workers’ comp policies. Many owners may be notified by their insurance companies as the law takes effect January 1, 2017, but confusion reigns.

Happy New Year to everyone in California. And to you in the other 49 states, Happy New Year and say hello to your new California neighbors who will soon be coming your way.