We live in the digital age where every piece of data seems too critical to ignore. The downside is that with so much data available, managing it becomes an overwhelming task. The result is that organizations often have too much data but don’t have the means to effectively use it.
Instead, their sole focus remains on compiling data without realizing that not every bit of data is essential to the organization’s success. What’s more important than gathering the data is organizing it efficiently so that the decision-makers can use it to make informed decisions that benefit the organization.
With financial data and documents being highly important, organizations must find ways to streamline the relevant processes. It is where finance and record management companies play a pivotal role. By combining finance and other records, these companies provide numerous benefits that we’ll discuss below.
Combining Finance and Record Management
However, before delving into the benefits, it is imperative to understand the finance and record management services. Although they may seem similar, they are quite distinct.
When we talk about finance services, it encompasses various activities related to money management. For example, tax filing or preparation, investment planning, and wealth management are all part of finance services. Of course, not every individual or business is qualified to provide such services.
Due to its highly technical nature, only engage with individuals or firms with finance experience. They may be chartered accountants, finance professionals, or even financial advisors. They use their knowledge and expertise to help you make informed decisions about your money.
On the other hand, an archives and records management company helps organizations and individuals manage their records. It may involve organizing the records for easy retrieval whenever required. It also includes the disposal of unwanted records or putting them away in secure storage. A record can be a physical document or an electronic file.
When we talk about combining the two, it doesn’t necessarily mean that a single company offers both services. Instead, it is more about integrating finance and record management processes and systems to work seamlessly together. The idea is to streamline the processes to benefit the organization.
The Benefits of Combining Finance and Record Management Services
By combining the two, organizations can benefit from:
Improved Organisation
The most notable benefit is that businesses and individuals can better organize their financial records. Your organization’s financial experts will explain to the record management company which records are critical and how long they are required.
Based on the available information, the record management company employees will devise a policy for the records. Once approved by the relevant stakeholders, they will work on its implementation. The policy includes information on the methods for storing, accessing, and destroying the records.
This policy makes it easier to understand how the records are stored and who can access them. Once the records are no longer required, there is no need to keep them. They occupy space (physical or electronic) and pose considerable risks. Thus, the policy proposes a method to dispose of unwanted records.
This organization ensures that all financial documents are readily accessible when required. Without it, employees would waste valuable time and energy finding the information. In some cases, a delay in finding the relevant information can lead to consequences, including financial and legal.
Enhanced Security
Another notable benefit is that it enhances the security of your critical financial documents. Indeed, most financial documents contain sensitive information. If this information is breached or leaked, it can be disastrous for the business. It may lose its competitive advantage and may be exposed to legal challenges.
Combining finance and record management services allows for the implementation of robust security measures to protect these documents. For example, most record management companies offer document scanning services. It may implement encryption or access controls in the scanned documents for added security.
While these measures may not guarantee 100 percent security, they substantially reduce the risk. On top of it, we believe having some security measures in place is better than having none. A top-rated company will conduct regular security audits to ensure the implemented security measures work effectively.
Efficient Tax Preparation
Nothing is certain in life except taxes and death. To avoid a visit from your tax man, it is better to file taxes accurately and timely. When financial records are properly organized, tax preparation becomes hassle-free. Your tax preparation professional can identify potential deductions and credits that may be impossible without organized records.
Cost Savings
Another benefit of combining the two is cost savings. Previously, an organization or individual would need to cater to two or more providers and systems. Cost reductions can be achieved by using a single system for financial and other records. Better record management prevents penalties and missed opportunities for savings.
Financial Planning Insights
It is said that data is the new oil. Of course, this saying is only valid when organizations know how to use the data. By combining the two services, organizations and individuals create a wealth of data. With the right techniques, your advisors can gain deeper insights into your financial situation.
What’s the benefit of gaining deeper insights? They can offer better advice as they have more information than before. This advice will be tailored to your situation rather than being generic. Secondly, they can use historical data to make informed decisions about the future.
Peace of Mind
When organizations and individuals know all their records are organized properly, they don’t have to worry about any untoward situation. Instead, they can focus their energy and resources elsewhere. A business can focus on improving customer service or expanding the business to new markets.
Conclusion
This concludes our views on the benefits of combining finance and record management services. Given the complexity of maintaining finance and other records, combining the two provides a much-needed respite. It can make financial management easier for all the stakeholders. Indeed, the benefits are undeniable, ranging from improved organization and enhanced security to cost savings.
About the Guest Author:
Humza has spent the past seven years building a successful career in the coworking industry. With a deep understanding of the needs of modern entrepreneurs, startups, and small businesses, Humza has helped establish productive and inspiring workspaces. Humza’s most recent project in this field is CocoSpace, a coworking space in Islamabad.