How Small Business Owners Can Build a Schedule for Maximum Efficiency
March 11, 2021How to Relinquish Control of Your Business
March 18, 2021How to Keep Effective Meeting Minutes
As business owners, we often have meetings with our team, board members, investors, etc. In many cases, you’re required to keep a record of your meeting minutes. However, the idea of keeping minutes of meeting records can be a little confusing to some. That’s why today’s entry is all about how to keep effective meeting minutes.
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TIME INDEX:
- 00:46 – How to Keep Effective Meeting Minutes
- 01:54 – Who is Required to Keep Minutes
- 03:05 – What Should be Included in Meeting Minutes
- 03:34 – Putting it into Practice
- 07:04 – Keeping a Record
- 09:04 – What Do You Do With Your Minutes
- 09:47 – Wrap Up
What Are Meeting Minutes?
Before we get into the “how,” I want to take a moment to explore the “what.” What is a minute? Obviously, it is a measurement of time, but what is a minute in the context of minutes of meeting? You see, I’m a curious person by nature, and I always enjoy a little history lesson. So, where does the term come from?
The term comes from the Latin phrase, “minuta scriptura.” This literally means “small writing” or, in a more modernized term, “rough notes.” They exist to keep an official account of what takes place in your business’ meetings. They help inform people who weren’t in attendance to understand what went on during the meeting. This includes who was in attendance, topics discussed, decisions made, votes taken, etc. So, now that we all what meeting minutes are, who’s required to keep them?
Who Is Required to Keep Meeting Minutes?
If you’re operating as an S Corporation or a C Corporation, you’re required to keep meeting minutes in most states. The states that don’t require meeting minutes as a part of corporate records are Delaware, Kansas, Nevada, North Dakota, and Oklahoma. Now, you should consult your own legal counsel to confirm that nothing has changed within your state laws, but my understanding at the time of this writing is that those states do not require meeting minutes.
If you’re operating under the banner of a Limited Liability Corporation (LLC.), you are never required to keep minutes. However, it is always good to keep them even if it isn’t required to protect your company. As an LLC, you are required to file an annual report with the state to update them on ownership and contact information.
The Basic Information to Include In Your Meeting Minutes
To keep effective meeting minutes, you should always include some basic information before getting into the meat of the meeting. The basics that should be included are as follows:
- Logistical Information. This tells the reader the time and date that the meeting took place and where it was held.
- Attendance. You should record the attendance, naming everyone in the room. Likewise, it would be best if you made a special notation for anyone who arrived late or left early.
- Itemized Agenda. Make a record of each topic that will be discussed, along with a brief description of the subject.
- Voting Actions. Anytime a topic is brought to a vote, make a record including how each party voted. You should also include a list of abstentions if they occurred.
- Time Adjourned. This one really is as simple as writing down the time that the meeting ended.
As you can see, this is fundamental information. There’s nothing complicated about it. And if you’re saying, “Justin, that’s great. But what about practicality,” Well, let’s take a look at how to keep effective meeting minutes in your own company.
How to Keep Effective Meeting Minutes
When it comes to recording your organization’s meeting minutes, there are some practical guidelines to follow. You want to be as efficient and effective as possible because things can move quickly. Here are some general rules for keeping effective meeting minutes:
- Write legibly. It’s possible that you won’t look at your notes for a long time, so make sure they’re clear. If possible, type them during the meeting. This will save you a step later.
- Store minutes on the cloud. I’ve been guilty of storing meeting minutes in a standard file before. Unfortunately, doing so opens the door for losing them. Using cloud storage such as Dropbox, Carbonite, or iCloud can help keep your minutes safe and secure.
- Use the meeting agenda as your outline. This is practicality at work. You already have the agenda in front of you. Use it!
- Make amendments/corrections for previous meetings. If you are reviewing your meeting minutes for January and notice an error, make the correction in February’s meeting minutes.
- Mention any documents handed out. If there are any documents handed out, you should mention them in your minutes and store a copy of the documents with your completed meeting minutes. On a side note, I’m not a fan of handing out documents during meetings because it opens you up to exposure.
- Describe decisions that are made. Who took the vote? Additionally, you’ll need to mention who recommended the motion and who seconded it. Give all of the details surrounding decisions. However, do not interject your own personal thoughts or opinions. Only record what has transpired.
- Don’t try to write down every word. You’re not a court stenographer. Trying to write down every word will likely cause you to fall behind and miss out on important details. Remember, minuta scriptura. Meeting minutes are rough notes.
These are just a few of the ways that you can ensure you’re keeping effective meeting minutes. Hopefully, you’re beginning to realize that this doesn’t have to be an intimidating task. Be thorough in your notes, ensuring that you’ve recorded all of the pertinent information.
What Do You Do With Your Minutes?
Once you’ve converted your notes into a completed document, what do you do with them? Archive them. You don’t need to file them with the state or anything like that. So, keep them with your other company records. As I suggested earlier, you would do well to use cloud storage for this. You’ll want to keep these records on hand for about 7 years, although some industries may require a little longer.
If you still don’t feel comfortable with keeping meeting minutes, don’t worry. We have an easy-to-use template that you can download.
Wrapping Up…
Friends, I know that life is hard. We all experience that from time to time. But life is good. Trying to record effective meeting minutes while also actively participating in the meeting can be frustrating. But it doesn’t have to be. By understanding the purpose of the meeting minutes and what needs to be recorded, you can keep them financially simple.
If you have questions about today’s topic or any ways that we help small business owners like yourself, reach out to us. The Financially Simple team is ready to meet with you and discuss how we can work together to grow the value of your business.