Ways Your Record Keeping Techniques are Harming Your Business

Outdated methods and techniques can damage your bottom line by denying you the efficiency necessary to compete. One technique that has been abandoned by some companies is analog filing methods. Do you still keep filing cabinets full of company records that take up space in your office? Not only are there better ways to get the job done, analog record keeping won’t be very convenient for your clients and contractors who have moved onto modern methods. Below we’ll discuss some of the reasons why you need to take advantage of the latest advances in technology.

Accountability

Outdated filing methods harm your business by lowering the level of accountability in your office. Often, several employees have access to files. This means that several employees have the ability to create, alter, or destroy data. Even if a mistake is unintentional, there is no way to tell which employee made the mistake. Additionally, there is no record that keeps track of when records are altered. This means that alterations to older records can go unnoticed for years. This can lead to problems with auditing and accurate record keeping, both of which can cost your company money. The worst part is that you may literally never know what you’re missing.

Security

When you choose to use filing cabinets for company record keeping, you also have very limited options for security. Most outdated record keeping methods are limited to physical and administrative securities. These are lower-level forms of security that can easily be breached by someone trying to gain unauthorized access. Software for record keeping can limit access to files by certain employees, and it can be secured by usernames and passwords. Even if you require employees to swipe ID cards and use a video camera, there are ways that the security of the files can be compromised. Additionally, digital systems provide an electronic footprint that can be useful for investigating any potential issues.

Risk of Damage

When you choose to file records using physical methods, the files are made of paper that can easily be destroyed or damaged. For example, if there is an unknown leak in the area where files are stored, it could cause mold growth that would eat away at the files until it is discovered. Additionally, many companies using physical filing cabinets do not have files backed up due to the exaggerated costs of storing or duplicating physical documents. In the event of a tornado, hurricane, fire, or other disaster, the files could be lost. Not only would the company suffer from physical damage, they would lose valuable information on clients, employees, company finances, and more.

Efficiency

Outdated methods for record keeping can also harm your company by causing inefficiency during the daily tasks of your employees. Employees will need to manually create data sheets, and then store the file in the appropriate location every time they complete a task. When information is incorrectly stored, it can be almost impossible to locate among the thousands of files that a company may have. Additionally, the efficiency of generating reports is significantly reduced. To create a report, an employee must collect all of the data and enter it into a program, or physically analyze it themselves. This can make some reports take an entire work day to run.

Cost

All of the above factors do one thing—they leave money on the table. The limited accountability and security of physical files can lead to theft or inaccurate record keeping that can lead to fines or lost revenues. The risk of damage to valuable company files can also cost your company money, by causing a loss of customer information that are important to sales. Time is money and using the latest methods and software for time, record, and project management will save your business both. Check out scoro.com to get an idea of some of the solutions out on the market today.

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Lautaro Martinez is a freelance writer and business student who offers articles and insights into the challenges faced in the modern business world, and advice for the aspiring entrepreneur.