Company management may find themselves being prosecuted by the regulators for negligence and other related crimes in case the company data is lost due to flood, fire, theft or misplacement of files. Further, the trust bestowed in such a management by the shareholders may be eroded since they will be viewed as careless and insensitive. In addition, both internal and external auditors may not be able to perform their duties of ensuring compliance with the process in absence of the records. Further, in case the sales were been done through a credit arrangement, it may be difficult to give the correct bills without proper records. More so, in case of reconciliation related challenges, it may be difficult to prove the case without any records to support the claim. In totality, the loss can be, massive and can cause the security agencies investigating including the taxman to interpret such a loss as a deliberate cover-up by the management of any fraudulent activities that may have been going on besides tax evasion.
Sighting the many challenges that can arise including ending the professional careers of the people responsible, no one can underscore the need to preserve documents and records through document scanning which helps in electronic preservation. A company may buy its own scanners or hire the document scanning services from companies that specialize in the service like document scanning Columbia SC. There are many gains associated with documents scanning like the improvement of space that ordinarily is occupied by file document cabinets that are bulky. However, by scanning the documents can be conveniently kept in company servers or from outsourced companies that preserve data for paid-up clients. The additional gain to these approaches is that the freed space can be used to perform other tasks that may generate additional revenue for the company. Another major reason of document scanning is the preservation of old documents and ensures they remain legible and are not affected by physical deterioration occasioned by handling of the documents over time. By giving limited access to specific users, it’s very easy to track documents movement. More so, you can give password protections, do some cloud storage, and encryption in a manner that ensures the data security is top notch. Instantaneous access to documents by staff across all locations of the company branches is possible when such documents are scanned and saved in an electronic format. This approach saves times and enable improve staff collaboration while performing there independent tasks. It is imperative to make sure documents can be accessed easily when required by properly indexing them in a way that ensures the audit compliance is observed. Finally, when documents are scanned and kept properly, it is easier to retrieve them and prepare correct invoice statements for the customers which lead to prompt payment of any outstanding receivables. This goes a long way in offering better customer service to all clients leading to satisfaction and consequently loyalty.