Top 5 Reasons Why Record Management is Important for CA Industry.
“Accounting is the language of businesses but records are its literature.”
Information accessibility, document management, security, and legal compliances are the topmost priorities of modern accounting. But in order to work upon these priorities, modern accounting firms first need to have a practical and cost-effective document management system.
They require a comprehensive record and record management system (RMS & DMS) which can help them store, retain, retrieve and digitize highly valued accounting records as per the national regulatory compliances.
Here are the top five reasons why accounting and audit firms must focus on building a good record keeping system?
1- Preventing The Rapid Loss of Business Records:
A recent study conducted by PricewaterhouseCoopers reveals that modern corporate firms and business houses usually lose 7.5 per cent of business documents, just because of poor record storage and lack of data archiving facilities.
Another study published by the Wall Street Journal has also estimated that for every twenty documents processed in an average business, one is lost or misfiled daily. Such a rapid mismanagement of records and documents can cost a million dollar hole in your pocket! Even, you might simply end up as a victim of offline espionage. However, by systematic record management tactics, you can simply eliminate all the possibilities of missing or losing your valuable corporate records.
2- Record management can save your valuable work-hours:
It has been estimated that an average employee in accounting firms spent almost 20 percent of their total work-hours in searching and finding the various accounts related paperwork, records, and documents.
This is a clear sign of poor time management-A systematic disaster that would eventually derail the average productivity and efficiency of your accounting and audit firms.
A good record keeping strategy is essential to alter these negative dynamics. It can help you to organize and arrange your accounting records in a systematic manner so they can be accessed, retrieved within a blink of an eye.
3- Keep aligned with the regulatory compliances:
Accounting and audit firms fall under the purview of various laws and regulations, that dictates issues that are related to or coincide with the national record-keeping policies, intellectual property rights and money laundering acts.
These laws further make record retention an essential and integral part of your business curriculum. That is why all responsible accounting and CA firms must wield a holistic strategy that is aligned absolutely aligned with the constitutional measurements.
4- Record Management, Reviving your urban work-space:
Every day, CA & accounting firms generate millions of physical records which if not stored and managed proper way, would eventually eliminate your urban workspace. Create your own records and document storage facilities or just outsource your storage needs to a third party record management company. This will not only help you to minimize the rising burden of physical records but would also revive your expensive workspaces.
5- Boosting Organizational efficiency and productivity:
Secure and systematic management of accounting records will help you to map and trekking the overall growth of each and every departments and individual, functioning within your organization. This further enables you to make quick organizational decisions and also helps you to strategize your future corporate policies, thus ensuring better efficiency and higher productivity.
Record and documents are the most important asset for accounting and audit firms. For them, records are like quintessential oxygen and hence needs to be stored, preserved, protected and managed in a time-bound and cost-effective manner.
Physical Recordkeeping and document management systems can become an ultimate panacea for these above-mentioned issues, especially when you are running accounting or audit firm which has been burdened with the overwhelming crowd of physical records!