It is very crucial to the survival of a business to retain its documentation and files. It establishes confidence within your business, among potential investors and your clients. It keeps businesses compliant and ensures that proper and accurate transactions are posted to the accounting system among others.
Important documents which are vital to the growth and development of an organization includes;
Invoices and Statements of Accounts (SOA)
Every record of sales and arrangement of accounts in most cases is handled by a firm by itself. These are account information required during tax calculation and for governmental responsibilities.
Delivery Receipts, Proof of Billing and Transmittals
The measure of expenditure and expenses is determined by a collection of delivery receipts, proof of billing and transmittals. Being able to track down the allocation of capital resources and bills is important during legal process and calculation of returns on investment, ROI.
Most of us retain a word document copy of contracts we issue, along with revisions made to them. This is quite vital especially if a legal issue arises. Basically, despite meticulously guiding these documents paper after paper, file after file, the following occurrences can occur and cause loss of business documents.
If you have ever had to go out for research purposes and in the process carry along with sensitive documents related to your work, more often than not, some of the paperwork disappear into thin air. Moving around with a document will not ensure the safety of the material.
Transfer From One Department To Another
When one particular copy of a document is needed by several departments, eventually one person will begin pushing the responsibility of safekeeping from one person to another. This will eventually lead to the loss of the document.
Impact of Losing Business Documents
At the onset of billing disputes especially with utilities or vendor companies, is very difficult to prove the right figures and processing takes a longer period of time. Large companies having enough capital investment and backup options for utility supply can survive a phenomenon such as this. For small scale businesses, it posses a very big problem and affects financial stability.
Loss of Revenue
When sensitive document such as SOA is missing, it is quite impossible to prove fraud cases or adequately measure and track down full revenue. In the process of retrieving the document, revenue is being lost. Inability to retrieve the document will also lead to loss of revenue.
Inability To Make Sensitive Decisions
It is difficult to improve sales without an account of how previous sales have been carried out. It is also difficult to reinvest profit with this issue on ground also. Sensitive decisions which will lead to growth are unable to be taken and carried out.
Contracts with financial responsibilities and specific information lost will have a hefty blow on a firm. In most cases, lawyers have a copy of the case file so such shouldn't be a problem. However, in a few scenarios where the law firm has also misplaced a copy of the document, legal proceedings will be quite hard to process.
Once business documents are lost it will become difficult to track transactions and confirm bills. Calculation of the return of an investment will be inaccurate and balancing of the company's account impossible. This helps a huge financial burden and can destroy small scale busine
Ready to upgrade your Records Management? Trust The Expert!
Archive One has the capability and knowledge your company needs to convert to a paperless office or manage your digital records system and eliminate offsite storage costs. We can help organize your files to be scanned and choose the right document management system so your business can have a high-quality, document imaging system to optimize your information workflow.
Archive One is a document management software designed to help companies easily classify, store, secure, and retrieve essential company documents that are needed for retention and audits. With the help of our partners, we provide an end-to-end document management solution from scanning to document storage, at a highly competitive price.