Owning a business means having to deal with a series of business documents. From the moment of its opening, in which a lot of attention is needed to various records, fees, permits, among other details, until after the deal is signed, the fact is that having to deal with a vast amount of documentation becomes an inevitable destination for any businessman.
From the point of view of document management, it takes a lot of attention to manage the constant flow of bureaucratic material that is part of the routine of a business. So that the organization's accounting and administrative processes do not become a mess, issuing, storing and disposing of documents call for best management practices.
After all, a bad document management can cause numerous problems for a company – and in many cases, the damage can be fatal.
In order to help you avoid all these complications, we at ZapSign have prepared this special article, dissecting all the necessary information about the main and most recurring business documents: what are they; which ones for how long to keep them; how to optimize your financial and physical resources through digitization processes; and much more.
Shall we go ahead?
What are the main business documents?
In practice, business documents are those that clearly record every step taken within the routine of a business, so that there are no doubts about the progress of its due processes. Occurrences, decisions, hires, layoffs, payments. In short, everything that is part of the company's historical archive.
This documentation may vary according to the character of the enterprise – after all, different organizations deal with different processes. However, there are documents common to any business, regardless of its nature. Next, we list the main ones.
1. Operating license
The business license is the document that grants the company the authorization to operate regularly in a certain property.
This document is granted by the Municipality, which is also responsible for establishing its validity period (usually between one to two years), and must be renewed at the end of the period, if the company wishes to remain in the same location.
The criteria required for the company to obtain the permit vary according to the rules of each city, as well as the nature of the business activities. All this is defined by the Zoning Law, which establishes what is or is not possible for a company according to each region.
2. Operating licenses
In some cases, just the license may not be enough, and operating licenses are required as additional authorizations. There are two possible types for this type of license, which must be requested from special bodies, according to their purpose: They are:
- Health License: document required to regularize companies that operate in certain specific fields, such as: hotels, food, health (including pharmacies), cosmetics, aesthetics and chemical products in general. It is provided by the local health surveillance agency.
- Environmental License: this type of license is required for any business whose actions may have an impact on the environment. Therefore, companies in the industrial, agricultural, metallurgical or chemical sectors are among those that must request the document from the local environmental agency.
3. Invoices
Invoices are documents issued in commercial operations. Mandatory for any company, they record both the services provided and the movement of products, inputs, outputs, exchanges, returns and shipments. Thanks to them, the collection of taxes on these practices can be carried out properly.
When invoices are not issued, the situation constitutes a crime of tax evasion, and the company is legally penalized. Hence the importance of storing invoices properly, in a safe and accessible place, for a minimum of five years (in order to comply with deadlines for tax collection and tax claims).
4. Accounting Records
so important for gestão financeira as the invoices are the books of accounting records. It is essential that they are kept up to date and that all the company's cash movements are described in detail: purchases, sales, payments, receipts, stock flows and so on.
There are several types of log books accounting: book diary; ledger; cash book; inventory record book; entry and exit books; tax calculation book.
All are mandatory under Federal Law, as they are the documents responsible for the economic records that prove the financial movement and the legality of the company's operations.
5. Proof of payment of taxes and social security contributions
It is the responsibility of any employer to collect, monthly, a whole series of taxes. Among these taxes are the social security contributions (INSS and FGTS) of its employees, in addition to the union contribution.
6. Human resources vouchers
In parallel with social security taxes, every company must also have other information on its employees recorded: payrolls, paychecks, time sheets, hiring and dismissals demand constant updating.
It is also mandatory that the company register each hiring or termination in the CAGED (General Registry of Employed and Unemployed), which can be done through the website of the Ministry of Labor.
7. Medical and work safety certificates
It is the company's responsibility to keep the periodic medical examinations of its employees up to date, in addition to taking all the necessary precautionary measures against situations of risk to health and safety in the workplace.
Likewise, all documentation provided for by occupational medicine and safety standards, such as PGR, PCMSO, PPP, LTCAT, ASO, EPI and medical leave certificates, must be observed.
8. Social contract
The social contract is one of the most valuable business documents, and it's no wonder: it contains essential information about the company, such as purpose, location, activity developed, important data about each partner, among many others.
It is simply impossible for an organization to operate legally, or even open a bank account, if it does not have such a contract.
9. Contract with the accountant
Last, but not least, it is necessary to remember that each and every company is required to have an accountant, who is the professional responsible for all legal obligations pertaining to the company's financial and accounting routines.
In this way, the contract between the accountant and the company describes the terms of this relationship, and needs to be carefully prepared, signed and stored, in order to guarantee all the necessary transparency and legality.
Why are business documents important and what are the consequences of not having them?
Business documents are of paramount importance in any business, and this fact is no accident. After all, they exist to ensure a series of guarantees, such as:
- check the appropriate levels of security and transparency in the company's processes;
- optimize financial and accounting practices;
- protect data;
- attest to the possession of goods and patrimony;
- generate productivity.
That said, it is clear that an organization's non-compliance with the proper documentation makes it subject to a series of severe consequences, such as:
- court lawsuits;
- fines and expansive financial losses;
- internal disorganization and rework;
- loss of information;
- inconsistent practices in the work routine;
- internal communication failures;
- closing of the company's activities;
For these and other reasons, performing a good document management is essential for any enterprise.
⚠️ Also check out these related articles 👇
➡️ 13 tips on how to manage digital documents well
➡️ What is current, intermediate and permanent archive in the document life cycle?
➡️ Learn about the consequences of poor document management
How to organize these documents in the best way?
The correct filing of business documents is an essential practice to keep them properly organized.
However, when we talk about archiving, we cannot fall into the trap of thinking that it is enough to keep them in folders and closets. It is necessary to prioritize security and the ease with which the documentation can be accessed.
Therefore, the importance of keeping documents properly classified, according to the dates of issue, respective categories, degrees of importance and other forms of quick identification.
Likewise, the standardization of the company's document procedures makes the process easier and more efficient for everyone who depends on it.
That said, the most important, within the current context of the world, is to invest in technological solutions. When transferring the files from the company to the virtual environment, whether by digitization or microfilming, and storing them in the cloud, the documentation becomes extremely accessible for everyone – without this compromising its security or legal validity.
Reinforcing the importance of technology in the internal processes of companies, the implementation of electronic signatures is a valuable practice that should not be underestimated.
Increasingly, organizations around the world allow contracts to be signed 100% digitally, ensuring security, speed and resource savings in concluding agreements of all kinds.
Although it may still be necessary to keep some documents in a physical environment, it is a fact that the solid scanning process, combined with automated practices, is essential to reduce bureaucracy in procedures and streamline transactions, in addition to avoiding material expenses and promoting better use of the physical space in the work environment.
There are several technological solutions on the market, from electronic document management even companies specialized in providing this type of service. It is up to the manager to decide which alternative best suits the needs and particularities of his business.
Now that you understand better about the role of corporate documents in your business, and about the importance of digital solutions in your document management, We invite you to discover ZapSign's plans in this link, our tool specially developed for electronic document signing.
