Home Budgeting Banking Why Small Businesses Need A Physical Security Deposit Box.

Why Small Businesses Need A Physical Security Deposit Box.

After small businesses have shopped extensively for the most competitive business insurance quotes, one of the first purchases they should make is a physical security deposit box. In an ideal world, when making their business plan the smart business owner would go out and purchase a security deposit box with the same bank or credit union they received approval for a business loan. To legally protect new business owners from tax audits or the destruction of important information, the new business owner would store their business plan and insurance premium paperwork in the security deposit box divided into organized files along with countless other legal paperwork.

While several online companies are providing digital asset management services, basically an online form of a physical security deposit box, it makes the most sense to either acquire a box through a bank or credit union close to your business. Also trying to purchase one from a department store or another retailer makes sense. While it is necessary to keep certain files in a security deposit box for legal reasons, it is also a good idea to maintain supplemental paperwork having to do with the processes you went through to open and maintain your business. Some of these types of paperwork could be your security deposit boxes, business renters you spoke to, or other business expenses.

The reason it is critical for saving your business insurance information is that insurance is a business expense that will always be considered tax-deductible and could very well be an important factor the government would consider when auditing your business. While the business plan should be stored in a security deposit box or through an online forum for longer than the statute of limitations on an insurance claim, within the state your business resides at–try to keep the records (indefinitely). With the comfort of a physical security deposit box, saving important documents like insurance policies, tax information, and business plans will not be a challenge whatsoever.

While an online forum might seem easier than having to maintain a physical security box,  a physical security box allows small businesses to not have to worry about the threats of online hackers trying to find private financial and personal information about your business. It would also be wise, if you choose to purchase a security box and not have one through a bank or community credit union, to store the box outside the business’s location, this way employers cannot get to it in any way.

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