This blog has previously discussed the importance of small to medium-sized companies having strong financial records. Not only does this make tax season easier, but it can ensure that a business keeps a strong credit rating, which will go a long way in determining its longevity.
A failure to keep thorough records of all transactions and ensure that a governing country's financial experts understand the provided information could be extremely detrimental to an organization.
Business Credit Reports
A Wall Street Journal article cited data from a survey the newspaper conducted with Vistage International. According to the report, only one in three small-business owners has checked his or her company credit report within the past two years. One-quarter of the firms that did check their data said they found errors or financial information that put their business into a riskier category for lending.
Rohit Arora, chief executive of Biz2Credit, a New York-based small business lending broker, explained to the Journal that the mistakes that smaller firms encounter are often due to missing bits of data. This includes anything from sales and revenue figures to timely bill payments that go unreported.
"Yet, from a credit-report standpoint, missing data is reason enough to classify a business as risky, since lenders and suppliers have less to go on when gauging whether a business will pay its bills on time," the article explained.
Document Translation Services
Brian Shappell, a government liaison with the National Association of Credit Management, told the Journal that it is important for business owners to keep themselves aware of their firms' ratings and that information cannot remain outdated.
For entrepreneurs who are expanding into a new country, working with a firm that specializes in document translation services can assist in keeping thorough records. Whether you need a translation of English to French or a Spanish American translation service 7brands got you covered.