You have worked very hard to get your business where it is today. Many hours have gone into finding the right mix of products and/or services, marketing and finding customers, building relationships and so much more. What would happen to your business if you should fall ill or worse yet, the unthinkable, you pass away? Protect yourself, your business and your family by putting a few processes in place.
Logins and Passwords
Keep a detailed list of all your login and password information together in one place. I know most people do not advocate this action. However, if you keep this list (hard copy) in a fairly secure location you will be fine. Make sure your manager, spouse or a family member knows where it is located. Include all your financial institutions on this list such as your bank, Paypal, your merchant account and gateways that are connected to your web site.
Subcontractors and Vendors
You also need to keep a detailed list of subcontractors and vendors with their addresses and phone numbers in one place. It is also a good idea to make notations concerning what is purchased from these individuals as well as how much and how often, not to mention when you pay them and how much you owe them. Having a list (or budget) indicating who you pay each month and how much is a great tool to have.
Customers
Keep a detailed list of clients and customers including names, physical addresses, email addresses and phone numbers. You should also keep a list of who owes you what and how often. You also need to have agreements (verbal or contractual) where someone can find them.
Employees
Keep your employee records and files current. This includes pay rates, agreements for raises and evaluations, hours to be worked and any special arrangements you may have with an individual.
Bank Accounts
Many businesses only have one authorized signer on their bank accounts. If something should happen to you, your assets will be inaccessible to your family and the business. Find a reliable family member, CPA, bookkeeper or friend to be an additional authorized signer on your accounts. This goes for your credit card, merchant account, loans, line of credit and savings account in addition to your checking account.
Financial Professional
You may not have a financial professional in your rolodex at this moment. However, it would be a big help to your `stand-in’ if you have the name and phone number of an accountant, bookkeeper or CPA that he or she can call for help. There are sales taxes, payroll taxes, and annual taxes that must be kept current in addition to everything else. As you know, it’s tough enough for you (the person who knows the business inside and out) to keep up with these requirements. The person who will be filling in for you isn’t nearly as knowledgeable.
If you use an accounting software program such as QuickBooks or Peachtree correctly most of the items listed above will already be in place. However, you must keep the information current and have a person trained to access the data. Don’t wait until you get sick, break a leg or are otherwise unable to keep your business going, to think about these processes. Don’t delay, get it done today!
Suzette Flemming is the CEO / CFO of Flemming Business Services.
Providing financial direction to businesses since 1994. Learn how
to save money and increase your bottom line by subscribing to our
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