The Value of Paper Trails
One of the hallmarks of a well-run aviation company is that it is organized and efficient. Part of that efficiency is related to having paper trails and documentation. In one respect, this provides aviation businesses a step up over other businesses when it comes to corporate value. The advantage is all of that required record keeping.
Whether manual or kept in computer files, most business in the aviation industry are mandated to have a considerable amount of paperwork. If the business includes operating, working on, or providing parts or services to or for aircraft, records are an integral part of the business, necessary for maintaining the value of aircraft, proof that FAA standards are met, and essential for confirming that things have been completed when they need to be completed.
While records related to aircraft-flight logs, maintenance logs-and parts may be well documented, there are many other facets of an aviation business where paper trails are important.
Why So Many Trails?
So what are some other aspects of an aviation business need good paper trails and why?
- Customer agreements and any changes that get made along the way-are changes being documented? Whether you are an FBO, an MRO, a charter company, distributor, manufacturer�Khaving good records of changes along the way can mean avoiding future disputes that could impede the value of the company.
- Staff records need to be complete, accurate and reviewed regularly. It is important to have clear delineation between employees and contractors. Written agreements should be in place for contractors to clarify their roles and avoid IRS issues.
- Financial records―this is a topic in itself that we will discuss soon, but the value of documenting financial transactions is extremely important whether they are small or large transactions, whether they involve loans from family, use of assets, or daily operations.
Paper or Digitized?
Of course, the phrase “paper trail” is in the process of becoming antiquated as more and more businesses turn to computerized records, but the concept is still the same. Virtual records have so many advantages: easier to search and find what you are looking for, take up minimal physical room, and if they are “on the cloud,” available either on-site or elsewhere as needed. And that has value.
