OklahomaHorses Magazine March 2022

22 OklahomaHorses • March/April 2022 Organization and Record Keeping Benefit Equine Businesses by Adam M. Trenk, Esq. F or the most part, the level of a busi- ness’ organization varies based on its size, scale, and maturity level. I have been consulting with equine profession- als for more than 11 years and have been around many facets of the horse industry over the course of my life. I have seen pro- fessionally organized equine operations on par with any medical or legal practice, and I have seen operations that fly by the seat of their pants. Inasmuch as having organized and accessible records is to be expected of a profitable, large-scale, and mature equine operation, say, one involving more than 20 horses and having been in existence for more than five years, you can also predict that a disorganized operation will almost certainly never achieve its full potential. Keeping records consistently, maintaining them over time, and having them accessible when you need them are critical compo- nents of a functioning business, and this is particularly true in the horse industry. Regardless of your profession, be it as a farrier, horse trainer, breeder, boarding-fa- cility operator, or hauler, good record-keep- ing practices can make or break you. Good record keeping will help you make more money, help keep you out of trouble, and minimize the extent of any trouble that you might end up in despite your best efforts. I have also found that in larger operations, the attention you pay to detail in organi- zation naturally encourages excellence in other areas. Thoroughness becomes part of the business’ culture, and things flow more smoothly. KEEP RECORDS ON GOODS AND SERVICES On the most fundamental of levels, it is imperative to keep records that include (a) the goods or services you manufacture or provide, (b) your costs in terms of both time and money involved in bringing those goods or services forth to your clients, and (c) the goods or services you have delivered to clients, who those clients were, and what they paid or owe. This information is generally important to make sure you don’t overpay on your taxes, and more important, it is how you determine whether you made any money. On a granular level, your records allow you to zero in on how much money you made over what period of time for each deliverable you produced or activity you performed. This allows you to then redirect your efforts to doing those things which have the highest rate of return. You will also know who your customers or clients are and have a grasp on whether you have been paid in full. If you are not doing this, simply put, you are not maximizing your productivity. SAFEGUARD YOUR LEGAL LIABILITY Records are also tremendously important from a legal liability standpoint. Every