With so many moving parts to your business, paperwork might just slip under the radar of priorities.
But make no mistake: a document is more than just a piece of paper. It is commitment to the future of your business and the values, mission and goal that it operates to accordingly.
Here at The A Firm, we deal with plenty of statements and records. So, our expert team has put together a curated list of the most important documents that any business needs to succeed.
Documents You Need Before Starting A Business
Just starting up your business, or thinking of finally taking the leap?
Creating your first business can be a whirlwind of priorities and tasks that seem to materialize out of thin air, but it is critical that you adhere to the laws in place by the Australian government.
Company Constitution: this document is a contract between all members of the business (including the director, employees, shareholders, partners, etc) outlining how the business is to be run in terms of managerial practices.
Shareholder Agreement: a legal document recording the expectations of all parties invested in the business, including shareholders & partners. This document is also considered an agreement between shareholders, covering how they expect the business to be funded, managed and direction of the business.
Further documents & records that will greatly aid in starting a business are:
- License agreements
- Joint venture agreement
- Consent to act form
- Employment contracts
- Documents of Registration with ASIC
Records That Will Keep Your Business Safe
If you’re already a business owner, then you’ll know how quickly things can go wrong and the immense value there is in being prepared.
These documents will ensure your business runs smoothly and optimally:
Financial Records: are a series of documents (both physical and/or digital) that list important financial information pertaining to your business. Most often these will be transactions: both inbound & outbound. These include private customer details, contract details, and legal documents, all of which must be recorded.
Intellectual Property Agreement: this document legally states that your logo, design, invention, product, brand, etc – whatever is unique to your business and that you have made yourself – belongs to you and you alone. There are plenty of different types of IP agreements, so consider which one best fits your business.
Want to ensure your documentation is up to standard? See if you have these documents up to date for your business:
- Protecting legal records
- Employee records
- Policies and procedures
- Consultancy service agreement
- Distribution agreements
Documents Needed To Pass Or Sell Your Business On
Many business owners create their business with the goal of one day retiring early and getting out of the business world. As certified accountants, The A Firm helps small Australian businesses do this every day.
To help make selling your business a smooth transaction, ensure you have the following documents:
Profit and loss statement: this document will need to detail the past 36 months for your prospective buyer, and is essential for transparency’s sake.
Employee contracts and agreements: this will give your buyer a clear picture of the expectations that your employees operate under.
A business will & power of attorney: these two documents are not actually related to selling your business. Instead, a business will dictate what you’d want to happen to your business should you pass away; it will also say who inherits your business. Power of attorney, on the other hand, gives your chosen agent formal authority to act on your behalf in all things business-related.
The Best Advice Doesn’t Come In A Document
If you need help with financial documentation for any stage of your business, there’s nothing better you can do than hire the help of a chartered accountant.
The A Firm is Australia’s most trusted accounting firm, with over 150 years of combined experience.
Learn how we can help the financial side of your business today!