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Company Policies

Tips for Creating Company Policies

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When it is time to create policies for a company, it may seem like a daunting task. People may not know where to begin. However, that does not have be the situation. There are some straightforward steps to take that can help enable a company to have effective policies that will last for many years.

Identify the Purpose

A good starting point when it comes to creating company policies is to identify the purpose of the policies. For some companies, the policies that will be created will be for clients or new clients. As a company changes or adds new services, a policy may need to be created or updated. For other companies, a new policy may be needed as a result of the changing economy in order to help serve customers in a better way. Identifying the purpose can help keep a company focused on what needs to be accomplished.

Do Beneficial Research

After identifying the purpose, some may immediately want to draft a company policy. However, it is better to do research before that occurs. If a policy is being adjusted, look at the original policy and determine what needs to be changed. Whether a company is creating a new policy or updating an old one, it may be helpful to contact another company in order to learn it has done. Besides this, there are companies that can analyze Corporate Governance and provide feedback as to how it may affect a new policy, such as Mitratech.

Make a Draft

Once the information has been assembled, it is time to make a draft of the policy. Remember not to have preconceived ideas as to the length or limits of new draft. The focus is on creating a draft. The draft will not be the finished product, but it will be a starting point that can help a company create a policy that will last.

Be Prepared for Feedback

People need to be consulted when creating or updating a policy. Companies can be put in a difficult place when customers, clients, vendors or employees were not asked to give feedback on a new policy. Feedback can provide valuable information as to where a policy can improve in order to make a company stronger.

When it comes to creating company policies, it does take time and effort to do it right. The work can certainly be worth it when a company has solid policies that will last for a number of years. That in itself can be priceless.

Tax Purposes

Track Business Records All Year Long for Tax Purposes

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Many business owners only think about their tax and expense records toward the end of the year and during tax season. Keeping up with certain records all year long makes life much easier at tax time.

Property Records

Invoicing, expenses and inventory are important, but don’t forget about the property owned by the business. You must do a return for property tax as a business annually. You can download a checklist at which reminds you about information needed for home office expense allocations. Very careful records need to be kept to successfully claim home office expenses.

Mileage Records

Owners and employees of businesses need to keep detailed diaries of automobile mileage. Typically in the case of employees, they will be reimbursed directly on a per-mile basis. The tax authorities typically have a maximum per-mile allowance. To ensure these expenses can be deducted, date, time, distance, destinations, and business purpose need to be recorded. For many employees, this will require several entries per day. There are apps available for smart phones that automatically track mileage so that personal and business mileage can be recorded more easily. In the United States, the IRS guidelines determine how these expenses are deducted.

Other Expense Receipts

Keeping up with receipts for items purchased from stores is extremely important to ensure that the deductions will stand up. Most of these items should be allocated to office supplies or office expense. In most cases, relatively inexpensive items, including most personal computers, can simply be set as expenses, but check with your accountant as to whether they will need to be added to your property tax return.

Some type of spreadsheet, accounting system or expense tracking software should be used to keep all of these expenses dated, sorted and allocated correctly.

Recording all of these items as you go during the year will make it much easier to prepare taxes. Your accountant will thank you, and you’ll maximize your expense deductions in the process.