20 Types of Business Documents Most Commonly Used by Organizations

Business and documents go hand in hand. You need documents to launch, run, and expand your business. To put it briefly, there isn’t a way of getting around them, and you need to set up a system to keep track of all the documentation you’ve accumulated over the years.

If you’re launching a business or curious about the types of business documents a company might need, this guide is for you. By the end, you’ll know exactly which documentation your company needs.

Let’s get started!

What Are Business Documents and Their Examples?

Business documents are records or files that provide information on a company’s internal and external interactions, operations, or activities critical for a company. These files can serve a variety of purposes, such as ensuring governance and protecting integrity.

Depending on the format, you can store this documentation physically or electronically. The latter option is often preferred, as most people choose to save important documentation online, even if they have a physical copy.

Common business documents examples include reports, proposals, presentations, charts, guidelines, contracts, process documents, agreements, wireframes, plans, and more.

Importance of Documentation in Business

Corporate documentation serves as the single source of truth for both routine business activities and disputes. The following are the top 4 reasons why having business documents is essential, regardless of the company’s size:

• Increase training and onboarding speed
• Ensure credibility
• Provide corporate governance
• Safeguard business integrity

Now that you know the basics, let’s move on to our business documents list.

20 Most Important Business Document Examples

Below, you’ll find a list of the most essential documents for any business, categorized into 4 groups based on the business aspect they relate to.

Finance

Your company’s finances are very important. That’s why having the 5 documents below is an absolute must.

1. Income Statement

A profit and loss statement, also known as an income statement, is a financial document that tracks a business’s total sales and costs to determine its level of profitability.

Income statements are essential for organizations of all kinds, including non-profits. Though not mandatory in most cases, they are vital for obtaining investments, loans, and grants.

2. Balance Sheet

A balance sheet lists an organization’s assets, liabilities, and equity and summarizes its financial situation at a specific time.

It is as important as an income statement when looking for investments, loans, or grants. A balance sheet also helps potential investors and lenders understand your financial capacity and whether they can generate any profit from your business.

3. Budget Report

Budget reports are financial statements that compare a company’s projected forecast with its actual performance for any given time. They help determine whether a business has achieved its financial goals and objectives based on the predictions.

Moreover, budget reports are helpful when searching for external funding. They assist investors, lenders, or grant givers in evaluating the business’s financial position and the yields they can expect.

4. Cash Flow Statement

A cash flow statement outlines the inflows and outflows of cash within an organization during a given period. It indicates how well a business undertakes its obligations to pay its debts in the short run. Funds are typically categorized based on their operational, investment, or financial usage.

Cash flow statements are standard financial statements like income statements and balance sheets. You will need them to secure investments, loans, and grants.

These business documents can also help you recognize constraints that affect your ability to pay debts or cover expenses.

5. Payment Agreement

A payment agreement is one of the business legal documents that specifies the payment terms between a lender and a borrower. It includes the amount owed, the payment plan, and termination conditions. Lenders can be businesses, banks, or individuals.

Payment agreements are necessary when seeking investments, loans, grants, or investing in another business or individual.

Organization and Operations

The 8 documents below will help you structure your company and improve workflow efficiency.

1. Business Plan

A business plan is a written document that lists an organization’s goals and the plans it will use to achieve them. It usually covers market analysis, product/service analysis, risk assessment, financing, sales forecasting and budgeting, and sales and marketing.

A well-crafted business plan can help an organization increase its chances of success by providing a timeline to track milestones, forecasting, and budgeting. Furthermore, it is crucial when looking for outside funding sources like grants, loans, and investments.

2. Company Bylaws

Company bylaws are policies that specify how a company will be managed and function. Usually, these documents are drafted by the ownership group or a board of directors. They contain identifying details such as the business name, address, location, and whether it is a public or private company. Some bylaws also address ownership group and shareholder concerns.

3. Business Report

Business reports provide information on how a business is managed. Much like a case study, they aim to find a problem and present a solution. Companies use them to analyze inefficiencies and problematic areas and improve organizational performance. They also help secure grants, loans, and investments by providing a clear audit trail.

A business report usually contains the following information:

• An executive summary that offers cliff notes.
• An introduction that provides context for the topics covered in the report.
• A body that delves deeply into the issue and presents detailed information.
• A conclusion that offers possible solutions and discusses how the results should be viewed.
• References listing any possible sources or information that the report makes reference to.

Additional contextual material not covered in the study is provided in an appendix.

4. Partnership Agreement

A partnership agreement is a business document that regulates the rights and obligations of the parties and provides information about the ownership or stake and the position of partners in the company. More specifically, it outlines:

• Percentage of ownership
• Management power
• Distribution of profits and losses
• Length of the partnership
• Buyout options
• Termination options

Business partnership agreements are drawn up when partnerships are established. The goal of creating such an agreement is to find a solution to any possible issue that can arise during the partnership.

5. Non-Compete Clause

A non-compete clause is an agreement employers implement to prevent employees or former employees from working for a competitor. These legal documents protect employers from acts of espionage within corporations or organizations.

Non-compete clauses are especially beneficial for companies that spend significant time on employee training.

6. LLC Operating Agreement

An LLC operating agreement outlines the company’s members and their roles and responsibilities and offers an idea of its internal functioning.

Operating agreements are flexible and might include the following sections:

• Organization (date created, its members, and ownership model)
• Management roles and responsibilities
• Voting procedures
• Capital contributions
• Revenues/expenses distribution
• Membership changes
• Dissolution procedures

If your business is an LLC, you might be legally bound to have an LLC operating agreement. However, if it’s not mandatory in your state/country, it is still highly recommended. This document will ensure that none of your members are confused.

7.  Terms of Service

A Terms of Service is a business document that outlines the regulations one must adhere to when using any product or service. These regulations concern not only the user’s rights and duties but also questions of legal indemnity.

This type of business documentation usually includes the following sections:

• Definitions
• Description of allowable use
• Disclaimer and user liability

Having Terms of Service in place is crucial to ensuring that your product or service is being used in the right way. That is, in the manner for which you intended.

8. Privacy Policy

Privacy Policy defines what happens to a user’s data or personal information. This policy mainly concerns the right to access a website but can also encompass other aspects related to personal information.

The document will generally include measures for acquiring, preserving, safeguarding, and processing personal information.

If your business has an Internet presence—which is the case with most companies today—you will need a Privacy Policy. This will allow you to be legally compliant and meet existing privacy obligations. Besides, if you have customers, clients, or users who are EU citizens, you will have to abide by GDPR.

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Sales and Marketing

Sales and marketing are crucial in a business since they are the primary source of revenue. Even the best products will not sell if any of these two components are missing. Below are the 3 essential marketing documents you should have in your arsenal.

1. Content Calendar

An editorial or content calendar is a planned schedule for your content marketing endeavors. In other words, it’s a plan for when you want to release a blog post, a social media post, or any other content. Once the content goes live, the calendar will outline the content type, publish date, and URL.

A content calendar is an excellent tool as it helps you stay organized and consistent and ensures your team is on the same page.

2. Marketing Plan

A marketing plan is one of the most important organization documents. It outlines the various marketing initiatives an organization plans to undertake.

A marketing plan typically includes:

• Workflow information
• Team assignment
• Buyer personas
• Tactics
• Goals
• Promotion channels
• Review of existing content
• Competitor evaluation

A marketing plan also assists in keeping an organized schedule so you are ready to implement your marketing strategies.

3. Pitch Deck

A pitch deck is a 10-20 slideshow that offers information about the company, its products and services it provides, and its business strategy. It is mostly used to attract investors and motivate partners and customers.

If you aim to secure funding to expand your business, you should consider having a pitch deck. It will help convince potential investors to commit to your product or service.

HR

As your company expands, so does the role and significance of the HR department. The following are 4 corporate documents examples that you will need for your business to function properly.

1. Employment Contract Agreement

Employment contract agreements refer to legal documents signed between the employer and the employee. These documents contain information on the work expected of the employee, work hours, wage or salary, and other benefits.

If you are not a sole trader, you will be recruiting people, which would require employment contract agreements. In the absence of a legally binding contract, both parties could lose.

A contract agreement shields employers from employees who ignore their expected duties. It also safeguards employees from being abused and unpaid for their work.

2. Contractor Proposal

Contractor proposals are business documents that contractors submit to apply for a particular job. They enable them to sell their services by indicating what they offer, how experienced they are, and how much they charge.

They also enable contractors to advertise their services instead of just providing a quote, putting them in a better position than the competition.

3. Subcontractor Agreement

A subcontractor agreement is a business document that outlines the business relationship between a business and a subcontractor. Such agreements are common in building and construction, although they can also be found in other fields.

These are specific provisions that are usually contained in a subcontractor agreement:

• Services provided
• Price/compensation
• Timeline

Every business that subcontracts some of its processes will need this document. It protects you under the law if the hired person fails to deliver on its promises.

4. Non-Disclosure Agreement

An NDA, short for a non-disclosure agreement, is a legal way of preventing a party from disclosing corporate information. Such information is mostly specific and may contain sensitive data, including how a particular business operates.
You will require a non-disclosure agreement if you don’t want your organization’s secrets leaked. An NDA is exactly the tool that will provide legal protection and ensure that doesn’t happen.

Wrapping Up

Business documents are your company’s superpowers. Tracking down such documents only when you require them can result in wasted time and, in the worst scenario, lead to a loss of reputation or non-compliance. That’s why modern businesses use services like Typing Service to keep their documents digitally organized.

Professionally digitized and available at your fingertips, these documents can revolutionize the way your business operates, turning everyday challenges into chances of success. Contact our dedicated team today to find out how we can help!