Keeping Your Compliance Costs Down
Compliance is said to be the most important part of business today. From registering your business to securing your data, these legal obligations are present to protect the interests of various stakeholders. Unfortunately, the new laws, however relevant they might be, do not cover the financial costs of compliance. That cost is passed on to businesses. Here are some strategies that can help minimize the cost of being compliant to all the regulations that businesses have to deal with.
1. Review Business Processes Periodically
Look at repetitive processes that generate redundant output such as repeatedly checking tasks and multiple documentation. For clarity and better visualization, draw or diagram your processes and workflows. If you are caught up with your business, try hiring an external Business Analyst to help you out. Keep in mind that sometimes, what could have worked in the past, is not always the best approach for the future.
2. Analyze Your Workforce
A Human Resource Manager should not be treated as a very expensive filing clerk, while an Accountant/CPA should not be burdened with records management. You might be utilizing them to perform admin tasks as a stop-gap measure, but that decision could cost you more in the long run. In fact, the time-consuming nature of admin tasks is a major barrier to adding strategic value across departments.
When your files are digitized and stored centrally, you also enable collaboration, swift and controlled data sharing among employees. It is far different from physical sharing which can be time consuming and costly. Chances are, what QA Auditors would require, are what ISO auditors would need. What Internal Auditors would need, are what Finance Personnel and Customers would demand. Moreover, the Data Privacy Act (DPA) pre-requisites are almost identical to EU General Data Protection Regulation (GDPR) requirements. There's no more need for multiple copies.
4. Manage Record Retention Processes
Records retention is a very expensive business process. Keep what is prescribed and manage the destruction of the rest.
5. Keep It Simple
It might be easier to over-complicate processes, but keeping it simple would be most beneficial. Simple processes are easier to understand and to follow. It has to be flexible, repeatable and measurable to serve its intended purpose.
What's Wrong With Copies?
Simple, they cost money
As your business grows, photocopying expense also grows. However, it can be cut down by going paperless.
They bring efficiency down.
Each copy adds to the files a person needs to sift through records.
You have to house them and pay their rent too.
Photocopies always manage to end up in records storage, and thus, incur even more cost.
They are a security risk.
Uncontrolled copies might end up with people who are not authorized to view them, posing potential harm and result in more cost brought about by breach in data.