Record management system has several benefits such as improving efficiency, better traceability and ensuring regulatory compliance. Record management and retention allows companies to make sure its staff has complete access to accurate information in a timely and cost-effective manner. Following are the most important benefits of setting up a good records management program in your office:
1. Control the Generation and Growth of Records
Even though we are increasingly becoming reliant on electronic files, the amount of paper used in offices has not significantly reduced. If a record management system is adopted, an organization can control the creation of records or copies and retain only those records that are actually needed or are active. This controls the growth of records and thus reduces the storage space needed.
2. Effectively Retrieve and Dispose Records
The consequences of spending too much time searching for misfiled records can be quite severe; you may not only lose in terms of billable hours but also lose valuable customers. This is why it is important to invest in a well-designed filing system that can facilitate retrieving records and disposing of records past their end-of-life date.
Also Check: Record Retention
3. Assimilate New Records Management Technologies
Investing in record management software can prove to be helpful if a company has physical record management system in place. The new record management technology can be assimilated with existing records system to make the system stronger.
Also Check: Document Scanning and Digitization
4. Ensure Regulatory Compliance
With government becoming stricter about compliance issues, it is necessary for companies to apply a good record management system and ensure they are in full compliance with laws and regulations. If any company fails to provide essential records during litigation or regulatory check, it may have to pay severe penalties or face legal consequences. The only way to ensure regulatory compliance is through advanced record management technology and a firm policy for records management and retention.
5. Minimize Litigation Risks
Implementing a record management system can reduce the risk associated with litigation and potential penalties. A well-planned and thoughtfully applied record management program can reduce the liabilities associated with document disposal.
6. Safeguard Important Information
Every company, public or private, needs a systematic program for protecting its important records and information from disaster or theft. Record management system preserves the integrity and confidentiality of important records and safeguards it as per set rules. This disallows unauthorized users from tampering with sensitive and important records.
7. Cut Costs and Save Time & Efforts
Handling Records takes up a lot of time and money in terms of storage space, printing, filing and staffing to maintain an organized record system. It also takes a lot of time and money to search or reproduce lost records in absence of organized system. Records management system can help save considerable expenses by reducing operating costs and improving efficiency of employees.
8. Better Management Decision Making
Making relevant data easily accessible allows companies to take decisions faster so that they can stay ahead of the competition or make an informed decision. Records management software makes useful data accessible and disposes off unwanted data, so that relevant data can be accessed faster. Indexing and retrieval capability allows managers and authorized executives to search and find files faster.
9. Preserve Company Knowledge
A company’s files are its knowledgebase, which forms an integral part of its future planning and decision-making. Every single record created in a business day is a potential background data for future management decisions and planning. These records document the activities of the company, which managers may use in future to research the workings of the company.
10. Keep Employees Motivated
Poorly managed records, unorganized filing system and frequent loss of important document creates a poor working environment, which has a direct effect on employees’ motivation level. Though you cannot put a quantifiable figure on the loss of motivation due to these circumstances, it is one of the most important reasons to establish a good record management system.
Also check: Automated Electronic Workflow