Record Keeping For Your Business

Proper record-keeping is essential for wax melt and candle businesses to ensure compliance with various regulations, manage operations efficiently, and build a reputable brand.

What records should I keep?

You should create and keep records in a few key areas. Let’s explore them now:

Sales Records

Maintaining detailed sales records is crucial for financial management and tax compliance.

• Invoices and Receipts: Keep copies of all invoices and receipts issued to customers. Include details such as date of sale, product description, quantity, price, and customer information. Often, your suppliers will send these records via email, so ensure your emails are filed and categorised.
• Sales Ledger: Maintain a sales ledger to record all sales transactions. This should include dates, customer names, product details, quantities sold, and amounts received. E-commerce platforms such as Shopify store this information securely for you to view and download at any time. Checking these statistics regularly will help you understand where your business is and where you can improve it.
• Tax Records: Ensure your tax filings accurately reflect all sales records, including VAT records if your business is VAT-registered.

We recommend using software to ensure you keep up to date with your admin tasks and don’t leave it to the last minute. That is when mistakes happen.

You could use Xero or Quickbooks or find alternative accountancy software. However, if you have any concerns, you can find a local accountant firm that can advise you for a fee.

TOP TIP: A good routine is to store and upload to your software as soon as you receive an invoice or place an order. If you do your admin weekly, add it to your calendar as a task you have to complete.

Purchase Records

Tracking purchases is important for managing inventory, cost control, and supplier relationships.

• Supplier Invoices: Keep copies of all invoices received from suppliers. These should include details of the goods purchased, quantities, prices, and supplier information. You can store this information on your accounting software and use it to keep the costs up to date and create your purchase orders directly.
• Purchase Ledger: Maintain a purchase ledger to record all purchases. Include dates, supplier names, product details, quantities purchased, and amounts paid.

You can use a Google Sheets document to track your purchases and create a business budget to stick to each month. This will help you see where you may need to cut back or invest more in future purchases. You can use the sum features to automatically adjust the numbers on your sheet for an up-to-date figure.

Alternatively, if you use accountancy software, you can track all of your purchases within it.

Ingredient and Material Records

Keeping detailed records of ingredients and materials used in production is essential for product safety and traceability.

• Ingredient Inventory: Maintain an inventory of all raw materials, including wax, fragrance oils, dyes, and additives. Record quantities received, used, and remaining. This is a good practice to get into from the start so you can manage your inventory at all times. If you use a spreadsheet you can easily adjust and edit it on the move and it will be easy to train others to take over the task of inputting data if required. A ‘Product Bible’ Google document could include a full stock count sheet, supplier information and master pricing. This would keep everything in one easy-to-reach place.
• Safety Data Sheets (SDS): Keep up-to-date SDS for all chemicals and materials used. These documents provide information on safe handling, storage, and disposal as previously mentioned.
• Batch Records: Document the batch numbers, quantities, and dates of production for each batch of wax melts. This aids in tracking and recalling products if necessary. Producing batch codes is a requirement for your products. It doesn’t have to be complicated at all and can simply be the day and date on which the product is made. You would record, on a batch template sheet, the individual ingredients used in the production of each product as so:
  
  

  You would then apply the batch code to that particular product. The batch code can be applied by hand, onto a CLP sticker or via a batch gun. Ensuring full traceability of your products is a key part of the Good Manufacturing Practices set out by the HSE. These guidelines are designed to ensure your wax melt business handles chemicals appropriately, stores information and records batching information as required.

Product Safety Records

Ensuring product safety requires diligent record-keeping of safety assessments and compliance documentation. Where possible, all paper records should be filed in a filing cabinet with clear dividers to make them easy to find as and when needed.

• Risk Assessments: Maintain records of risk assessments conducted for each product. Include details of identified hazards, risk evaluation, and mitigation measures. This should also be done for all events attended by your company.
• Testing Records: Keep product testing records, such as burn tests or chemical analyses. Include test results and any corrective actions taken. This can be kept in a central Google drive for easy access and referral.
• Compliance Certificates: Store copies of compliance certificates and third-party certifications demonstrating adherence to safety standards and regulations. A filing cabinet for paper copies is recommended.

Customer Records

Keeping track of customer information and feedback is important for building relationships and managing quality control. You can use your database to market new product launches and build customer loyalty and trust.

• Customer Database: Maintain a customer information database, including names, contact details, purchase history, and preferences. This information can be saved safely in your E-commerce platform. Ensure compliance with data protection regulations, such as The Data Protection Act 2018, at all times. It is important that you only handle customer data to which the customer has given you access.
• Customer Feedback: Record and analyse customer feedback, complaints, and returns. Use this information to improve product quality and customer service. Use a service like Gorgias to communicate with your customers and save replies to improve efficiency and ensure every customer has a consistent answer and support. This makes it easy when training new team members and also ensures your customers receive a consistent answer to their questions, which builds brand trust.

Regulatory Compliance Records

Demonstrating compliance with various regulations often requires documentation such as SDS storage, insurance certificates and contracts with management companies.

If these are digital records ensure they are stored in your Google Drive in an easy-to-access folder labelled Management and if they are paper copies store them in a filing cabinet.

• CLP Compliance: Keep records of labelling and packaging compliance with CLP regulations, including label templates and packaging specifications. A product bible folder may be the easiest and simplest way to do this. Have a folder for each SKU, which includes the documented recipe and the relevant SDS paperwork. You can then use this folder to aid in the training of your team to ensure they follow and understand the recipes set out.
• Environmental Records: Document waste disposal, recycling efforts, and environmental impact assessments. Include records of hazardous waste handling and disposal procedures. Store your contracts and agreements with all waste collection agencies for full traceability. Trading Standards could request this, but likewise, a very eco-conscious customer might request to know more about your waste disposal procedure to better understand your business before purchasing.
• Insurance Documentation: Maintain copies of all insurance policies, including product liability, public liability, and other relevant insurance. You may need access to these for events you want to attend with your wax melt and candle business. It’s also a good idea to add a recurring task to your calendar to remind yourself to check through your documents and browse insurance companies before your business insurance renewal. Just like you would with your home insurance, there is nothing wrong with shopping around for the best deal.

Financial Records

Accurate financial records are necessary for effective business management and compliance with financial regulations. Tracking your financial position within the market is vital to understanding how to grow and take your business to the next level. You need to know where you are spending your money to understand better how to reorganise your funds as and when needed.

• Accounting Records: Keep detailed records of all financial transactions, including income, expenses, assets, and liabilities. Use the software we referenced earlier such as Xero or Quickbooks to store your records as and when you receive them.
• Bank Statements: Retain copies of bank statements and reconcile them regularly with your accounting records. This is where you sit down with a couple of highlighters and manually check that the transactions on your bank statement match those recorded on your expense sheets. Alternatively, your accountancy software can do this automatically for you. This is an important exercise as it will allow you to identify any key areas in which you can reduce your costs.
• Tax Returns: Store copies of all tax returns filed with HMRC, along with supporting documentation. You can do this using the previously mentioned software or save them in a personal file on your Google Drive.

Keeping track of your financials can feel like a laborious task, but if you set aside a few hours each week, you will soon keep on top of it. Try to avoid putting it off until the last minute. Trust me, that’s a position you don’t want to be in!

Employee Records (if applicable)

Maintaining accurate employee records is essential for businesses with employees. As an employer, you must store and keep several key documents up-to-date.

• Employment Contracts: Keep copies of employment contracts and job descriptions for all employees. Create a folder for each employee and include the documents alongside a personal record that includes strengths and weaknesses you can discuss with your employee during performance reviews. If these records are in paper form, they must remain locked in a secure filing cabinet, and if they are digital, they must be safely stored behind passwords to protect your employees' data.
• Payroll Records: Maintain records of employee wages, salaries, deductions, and payroll taxes. This can be done via software or through your accountancy firm.
• Training Records: Document employee training, including safety training, chemical handling, and other relevant training sessions. This information should be added to their files and include how the training went, if they need to improve and when the refresher courses will be held.

It is of the utmost importance that the information regarding your employees remains confidential and is stored under lock and key or password. The information provided to you by your employees is sensitive and should be treated with respect at all times.

Conclusion

Keeping accurate and comprehensive records will help you track your business performance and build your understanding of where to direct your finances.

You will be able to have a full and accurate understanding of not only the financial status of your company but also that of your employees, keep up to date with customer records and manage your inventory.

All of these things will help you manage your business overall, leaving you more time to focus on what is important—making more sales!