Understanding Records Management

Understanding Records Management

Practically every business in the world keeps records, and of course these records need to be kept in such a manner so that they can be accessed whenever necessary. In order for this to be possible, a business's records need to be sorted into various categories and maintained in an orderly fashion. Likewise, as time goes by, certain records will no longer need to be kept, in which case they should ideally the destroyed.

What Are Business Records?

Business records would include things such as receipts, invoices, order forms, delivery notices, shipping records, tax receipts, pay roll records etc. In fact, anything relating to a company's activities can be considered to be business records. Many small businesses and private contractors are able to manage their own records, whereas large corporations often choose to use the services of a records management business. Such a business would then be responsible for managing all of a company's records and documents.

What Does Records Management Involve?

Generally speaking, when a business is hired in to manage a company's records they will essentially need to make sure they comply with all the company's rules and regulations regarding records maintenance. Furthermore, they also need to ensure all relative legal requirements are met. Those responsible for managing a company's records will more often than not implement a suitable system together with certain policies.

This is done so that records and documents can be maintained in an efficient manner. Having an efficient records management system in place also means that documents and records will end up being destroyed once they are no longer required. Depending on a company's policies, document management may also involve the creation of new documents and records.

Unlike in the past, most records management businesses nowadays tend to use digital storage rather than paper storage, and of course this has made it possible to have documents and records maintained to a much higher standard than what was previously possible. Records which are stored on digital media are of course far easier to track down than what paper records are, and of course they are certainly a space saving solution as well.

Why Does a Company Require Records Management?

Even though companies have certain legal obligations regarding the management of company records, statistics suggest that less than 40% of businesses actually enforce any type of management policy. Even when a business does have specific policies in place, it is estimated that at least 50% of employees will fail to comply with such policies.

Such a nonchalant approach can end up costing a business dearly, not to mention the fact that it could also result in the loss of sensitive business information. In fact, many businesses have had intellectual property stolen simply because of poorly implemented policies involving the management of their records. Irrespective of how effective policies are, if there is no one to enforce them, and most employees ignore them, even the best policies will prove to be useless.

Most records management agencies use sophisticated software in order to minimise the risks concerning the loss of sensitive company records. For example, this software will allow management to classify each document independently, and depending on a document's classification, the software will then make it possible to keep track the document in question. If the documents are stored digitally then the software will track any activity concerning the documents.

Harry Worthington is an established business writer who has been writing around the subject of business solutions including outsourcing services and records management for more than 10 years. For more information about the records management solutions available for your company, visit the TNT website.

Article Source: http://EzineArticles.com/expert/Harry_A_Worthington/625604

Article Source: http://EzineArticles.com/4184829

_(By Harry A Worthington).