21 types of business documents
These are some of the most widely encountered business documents:
Companies often agree to collaborate with other parties for reasons such as sales, purchases, licensing, or any other type of agreement. The exact details behind these collaborations are recorded with contracts signed by both parties and constitute an obligation for everyone involved to fulfill their agreed obligations. Contracts are legally binding and legally enforceable.
2. Documentation of bylaws
A company's documentation of bylaws is a set of internal rules and regulations that its management has established to inform all employees of the agreed-upon standards and practices. It usually outlines the company's organizational structure, potential governance issues, and the individual role of each employee in the organization's well-being. They're not always legally required but are usually helpful for any organization.
3. Non-disclosure agreement
These agreements are signed between an organization and various other parties, such as employees, business partners, contractors, and freelancers. They aim to safeguard the company's essential information, such as details regarding various projects, client lists, financial records, or future strategies, by having the other parties agree not to disclose them. They can be crucial for an organization's well-being, as they can preserve its competitive advantages.
4. Employment agreement
This document is signed each time a company hires a new employee. It covers the employee's duties and role within the company and the company's obligations toward the employee. They're essential in maintaining good relationships between organizations and their employees. They can be used by both parties in a court of law to prove that the other party has failed to fulfill its obligations.
5. Business plan
The business plan is often the first document created by a business owner. It's a plan that outlines what the company aims to achieve, the timelines for its objectives, and how to achieve them. Creating an effective business plan usually requires thorough research of the competition, target audience, and the market as a whole.
6. Financial documents
Managing the budget is often a significant part of ensuring an organization's long-term success. Financial records such as balance sheets, income statements, bank statements, receipt records, and payroll reports help the organization's management keep track of all income and expenditures, ensuring the company's financial health. They're also used to create annual financial statements to analyze the organization's economic performance.
7. Transactional documents
Unlike financial records, transactional documents help the organization's management maintain a healthy budget. They include all documents issued due to a transaction, such as invoices, receipts, and payment orders. Keeping track of them helps the company know the funds going in and out at all times.
8. Compliance and regulatory documents
Depending on the company's industry, it may require proof that its operations are conducted within certain regulatory limits and standards. Compliance and regulatory documents prove that the company is within all regulatory boundaries. Most of these documents refer to the treatment of employees, compliance with tax regulations, and conducting operations according to industry and environmental standards.
9. Business reports
Business reports help the organization's management gain insight into various internal aspects. They outline multiple elements regarding the company, its transactions, employees, contractors, and other relevant information, helping management make informed decisions. They can also show the organization's business situation to potential investors.
10. Minutes of business meetings
Keeping minutes of the company's most important meetings can help everyone involved analyze what was discussed and the decisions' validity. This can clear up any uncertainties and disagreements by showing exactly what was said in unambiguous terms. Effective meeting minutes often include as much information as possible, including a list of everyone attending the meeting and voting on various decisions.
11. Contractor agreements
Whenever an organization hires a contractor, the two parties must clearly outline the collaboration's details. Some of the most often-included information in such an agreement is regarding who owns the completed work, the deadline, and the amount owed to the contractor. It may also contain details regarding quality standards.
12. Business Insurance
Business insurance is a way for companies to protect themselves against various risks. Significant business losses, natural disasters, catastrophes, accidents, and theft are the most common risks. A business insurance document is a file where the organization keeps different insurance policies that cover various risks.