It’s in the nature of businesses to create documents and records. It is actually required by law. Companies are required to have a particular number of years worth of records for that purpose of tax audits and that type of thing. This is what makes records and document management essential.
The first thing that records and document management is going to do for you is actually be sure that your records and documents are kept in order. You do not want to have to search around through hundreds of files as well as a large number of computers for that records you need to show your auditors if SARS decides they want to audit your company. You need to have everything in one location as well as arranged in a logical fashion so that it is all simple to find.
Making sure that you have some type of records and document management system in place additionally makes things simpler for your workers. They might not always want to follow the rules as well as file their documents properly, but when it comes to locating the relevant documents to some transaction or other having this program in position will be useful.
This kind of records and document management system additionally makes life much easier for your accountant. They do not have to guess where the relevant invoices as well as credit notes and that type of thing are to be discovered. They are always in the same place. It also helps to make certain that nothing goes missing and causes the actual books to be out of balance.
For a long time companies kept hard copies of all their records as well as documents. It is now possible to keep digital copies of everything. If you do choose to go this route then just be sure that you have a number of up to date backup copies of the records and document management system. Computer systems do sometimes get hacked or files could get corrupted due to a computer virus or perhaps a hardware malfunction and you have to be able to recover from this problem. This is exactly what a back-up is for.
As you can tell, there are a lot of good reasons to have a records and document management system in place. It usually makes the lives of everybody much easier. It is easier to find the documents that you are looking for and it makes it easier for everyone to file their own documents and records. It will help to keep you out of trouble when it comes to your tax. If you do not keep your documents and records organized then you are likely to have trouble if you get audited by SARS.