 The
Development of high-speed communication systems has given our generation the
ability to store massive amounts of information in compact spaces. However,
here are 3 very important reasons why businesses need to keep a backlog of
documentation:
- Regulatory Compliance - Federal, state, and
local regulators impose requirements on record keeping that vary in term from
quite short to very long periods of time.
- Litigation Avoidance In order to protect your
organization against litigation you must maintain records as proof of the
authenticity of business transactions.
- Sound Business Practice B Auditors and
accountants require internal controls for all business systems. Business
records document these controls.
The Problem
While it is clear
that we must maintain our record keeping, some businesses do not have the
proper technology to electronically store their records. In this case, a
business owner may opt to rent additional storage space rather than update
their records system or add onto their facility. Why? Because such additions
cost money. Consider the outflow of cash toward additional personnel insurance,
and rent. |
