Definition

Spending money on tools, staff, or projects that make the business better. A careful investment builds a stronger foundation for the future.

What to consider

  • Keep records organized and updated.
  • Ensure security and backup of sensitive data.
  • Review records regularly for compliance.

Real world scenarios

  • A company organizes all financial documents in digital folders for easy retrieval.
  • An entrepreneur maintains thorough records for tax purposes and audits.
  • A small firm uses cloud-based accounting software to store financial data securely.

Related terms

Entrepreneurial Finances