Why do I Need a Records Management Policy?

(Here’s an article of great value to small business owners, www.GBN-Online.com)

By Michael Thomas on Aug 29, 2009 in Business Management

Records management is a necessity in today’s fast-paced business environment. No longer is it a simple matter to keep necessary records ? there are significant consequences for failure to do so. Depending on the nature of your business, records are needed for ongoing customer service, tax purposes and for legal reasons. If business records are required and can’t be located, the repercussions can include hefty fines, sanctions, and even jail time for company executives.

The best way to avoid these problems and ensure that your records will be properly maintained is to put a records management policy into place.

Keep what you need

With a records management policy in place you should be confident that all your important records will be kept properly. There are a few things to keep in mind when setting up your records management policy. You must consider what documents need to be kept and for what length of time. While it is helpful to keep records close at hand in your own office for a short length of time any older records will simply be in the way. Knowing what files are needed, and what their retention schedule should be will help you free up valuable space and avoid issues down the road. If you?re not sure what documents within your business are true Business Records, it?s best to seek the advice of a Records Management Professional who can help you with the decision.

Streamline Operations

Consider the type of records that you are keeping and how long you need to keep them not only for your own needs but to satisfy legal and tax obligations. Divide records into categories so that you can send older or unnecessary records to a secure storage facility. A records management policy gives employees a guideline to follow when working with important papers, avoiding confusion and ambiguity that can lead to problems later on.

Increase organization

Without a records management policy your business records may be left in a state of disrepair. Old records may be inadvertantly destroyed or misfiled. Also, as companies experience higher turnover rates, and use outsourcing for their staffing needs needs, the need for a records management policy increases exponentially. As more employees are brought in and out of the company the risk increases that data will be mismanaged. Putting a policy in place will automatically make your office more organized and will give everyone working with you the same set of rules.

Save time and money

Consider leveraging the services of a professional Records Management Company. Records management takes a lot of time and energy that most companies aren’t prepared to handle on their own. Outsourcing this task makes sense since a records management company is experienced in working with record organization and storage. They can assist you in your record-keeping needs and are available to do as much of the storage filing tasks as needed. Once you put a records management policy into place and get a records management company into place you don’t need to worry about record keeping.

Whether you have a new company, a growing company or an established business you need to ensure proper document storage on an ongoing basis. A well-defined records management policy will keep important records available when you need them and protect you from future problems.