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April 26, 2022

Why Proper Documentation Matters for New Contracting Businesses

There are a number of themes you'll be thinking about as you look to get your new contracting business off the ground, and one of these is documentation. There are a few important areas where documents and records play an important role in management of your business, and ensuring you're up to speed here is vital as you move forward.

At Contractors School, we're proud to help many Utah clients with starting up and maintaining their contracting business, offering everything from basic business setup (including themes like CPA consultation, filing of Articles of Incorporation and more) to DOPL contractor license exam courses and many others. Why is proper documentation in various areas so important as you get started? Here are a few main reasons.

Managing Liability

First and foremost, good documentation can help protect your business from liability. In the event of any sort of accident or incident, good records can help prove that you were following safe working procedures and taking all necessary precautions. Proper documentation can also help in the unfortunate event that a lawsuit is filed - having good, accurate information on hand will be very important in proving your case.

If you do not have good documentation in place, you could be leaving your business open to a lot of unnecessary risk. It's important to remember that as a business owner, you are always responsible for any accidents or injuries that occur on your property, regardless of fault. Having good records can help reduce the chances that you'll find yourself in this situation.

Tax and Insurance

As the owner of a contracting business, you'll also need to be aware of the tax and insurance implications of your work. Good documentation can help you stay on top of this, as it will provide a detailed history of your business activities. This information is important when it comes time to file taxes or make claims with your insurance provider.

Maintaining a good paper trail is essential for any business, but it's especially important for contracting businesses. By taking the time to properly document your work, you'll be ensuring the safety and security of your business - and that's something we can all appreciate.

Clear, Straightforward Processes

Throughout your various business dealings, you'll be relying on clear, straightforward processes to keep things running smoothly. Good documentation can help ensure that these processes are as efficient as possible, by providing a reference point for everyone involved. In the fast-paced world of contracting, it's important to have a system in place that you can rely on - and good documentation is a big part of this.

Compliance Themes

Finally, good documentation can also help you stay in compliance with various regulations and standards. By having accurate records of your work, you'll be able to demonstrate that you're following all required safety procedures and working within the bounds of the law.

Good documentation is an essential part of any business, and this is especially true for contracting businesses. By taking the time to set up accurate records and procedures, you'll be able to protect yourself from liability, stay on top of your taxes and insurance, and maintain compliance with all applicable regulations.

For more on this topic, or to learn about any of our services to contractors starting a new business, speak to the pros at Contractors School today.

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