As a contractor, you likely have a lot of tools you rely on to help you get tasks done for projects. You may manage several projects at once on multiple different job sites, all while keeping track of deadlines. The last thing you want is to search for missing tools and equipment.

Unfortunately, there may also come a time when an important piece of equipment goes missing because it’s been stolen. Everything from large and small equipment to vehicles, materials, and tools are stolen from job sites Having your tools and equipment stolen can be detrimental to your business. It can delay your projects, and leave you on the hook for replacing what was stolen.

In scenarios like this, recordkeeping can help.

What is recordkeeping for contractors?

Recordkeeping involves organizing and storing a variety of documents including files, images, and invoices. For contractors, recordkeeping may also include information on tools and equipment, projects, and other details.

Why should contractors keep records?

As a contractor, you may benefit from recordkeeping in the following ways:

  • Easier to keep track of tools and equipment.
  • Helps keep track of expenditures and costs.
  • Notifies you of service dates for equipment.
  • Provides details that may be useful in the future if something is stolen.

What should be included in a contractor’s records?

A contractor can make their recordkeeping as simple or as complicated as they want. The simpler your records are, the easier they are to maintain. However, the benefit of having more detailed records is they may be more useful to you later.

To get started, you need to decide what information about your tools and equipment you’d like to record and where you want to keep it. You may decide that it’s easier to maintain records in a digital format, or you may want to keep it all in a notebook or binder. If you want to keep digital records, it’s a good idea to have a hard (paper) copy as a backup, just in case your computer or tablet breaks down. Choose the method that is easiest for you. The easier it is to do, the quicker you’ll get it done.

Once you’ve decided on the template, start filling out the information.

Here is some basic information that you can include:

  • The make and model of tools and equipment
  • The serial number or product identification number/code
  • A description that may include logos and markings

Additional information you might want to include is:

  • The purchase date and cost
  • Service dates if applicable
  • Photographs

When would recordkeeping come in handy for contractors?

It may seem like an inconvenience to constantly maintain and update records of your tools and equipment, but the benefits of having accurate records may surprise you. Here are examples of situations where recordkeeping can save you time and money:

  • If you ever need to file a claim or report a theft, you’ll have a record of your tools and equipment, including specific details.
  • You’ll know what’s in your inventory and avoid buying things you already have.
  • You’ll be able to track service dates and keep track of what tools and equipment need replacing.
  • You’ll be better prepared for projects because you’ll know if you have the right tools or if you need to go buy something new.

Protect your contracting business with insurance

As a contractor, you’re busy with planning, managing, and coordinating projects on top of a lot of other things. Despite your best efforts, you can’t control everything and unfortunately you can’t supervise every aspect of your job site 24 hours a day. If you’re looking for more ways to protect your business, contractor’s insurance may be the solution for you. Visit our contractor’s insurance page today!

This blog is provided for information only and is not a substitute for professional advice. We make no representations or warranties regarding the accuracy or completeness of the information and will not be responsible for any loss arising out of reliance on the information.