Every business needs to keep detailed records in order to maintain normal operations. Quality records management ensures that any business can keep up with a growing client base and adjust to changes.
Change is inevitable over time because business needs fluctuate. Bad records management can lead to damaged business relationships and delays in virtually every department in the company from day-to-day operations to accounting.
Bad records management can also be very serious in case you need records for taxes, payroll and more.
Consequences of Bad Records Management
Many consequences can arise as a result of bad records management. Everything must be tracked in a business because of taxes and budget concerns. All business big or small should have a budget in place.
Not keeping good records can result in businesses exhausting the budget and spend more than is coming in. This can result in problems with suppliers, payroll, utilities, and more.
The brand recognition and the reputation of the business can become tarnished if any problems arise, especially when it comes to payroll. Failure to pay employees can also result in legal consequences.
Businesses may need to file bankruptcy or shut their doors if they fail to keep good records from the start. Sloppy records reflect very poorly on the business and word gets around fast.
Sometimes poor records management goes unnoticed, depending on the severity of the problem. Regardless, it’s still vital to keep good records in every area of business.
Companies should have back-up systems in place to ensure that the records are protected. Some businesses still use old fashioned filing systems, especially for lawyers and small companies.
However, with modern methods of business and communication, it is imperative that hard copies and digital copies are organized into a system that complement each other.
Step 1: Build A Business Plan
A business plan is the lifeblood of your business. It creates order by defining goals and features details about every aspect of the business.
Failing to plan can and will set your business up for failure. It’s vital to create a business plan or hire someone to create one for you.
What goes into a business plan?
A business plan should include quarterly goals, growth projections, and other important operational information.
The beginning of the plan offers general company information, including your address and contact information, and should be followed by a table of contents and a non-disclosure statement.
It also includes information about funding, purpose and long term goals, and should feature information about the history of the company, target customers, operations and cash flow.
A good business plan doesn’t guarantee success- there are so many factors that contribute to the potential profitability of a company, but a business plan can get a company on the right track.
Don’t just plan- Implement!
Implementing the plan is just as important as creating the plan. Your plan is meant to give the business direction and provide a record of past approaches for future comparison.
Don’t let analysis paralysis stop you from acting on your plan- it’s essential to put it into action and make adjustments when necessary.
Check Records for Accuracy
Keeping records is important, but it’s just as important to keep accurate records. Never falsify records to cover up past mistakes.
It’s vital to keep good records from the start, but some small business owners fail to do this because of inexperience.
Regardless of what happened in the past, you can always pick up the pieces and make changes to improve the efficiency of your business.
Checking and double checking all records is extremely important. Failing an audit can result in crippling fines or legal consequences.
What Types of Records Should You Keep?
The type of records a business keeps depends heavily on the needs of the business. Records can include a huge variety of information in various formats, including Photos, Papers, Invoices and more.
The most common types of records include documentary materials about the business and how it functions. Spreadsheets can include information about supplies, products and more.
Invoices, books, maps, photos, employee data and other information must be organized. Vital records must be kept secure within a computer, filing system, or an electronic document management system.
Avoid the long-term issues of a bad record management system
Record Nations can help you find the right company to sort through and improve your records management, whether it’s helping you implement an Electronic Document Management System or help you scan or store all your records, our experts can help!
To get free, no obligation quotes on records management of any kind, fill out the form on the top right of this page, or just give us a call at (866) 385-3706. We’ll help you find a way to better record management quickly and easily.