Why should all businesses store their information electronically?

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Many companies are unaware of the amount of important information they have and that it needs to be protected. There are many reasons why storing documents electronically is good business practice, for example, it is easier to find, it can’t be misfiled, filing cabinets are no longer required so more office space becomes available and of course savings are made as people are not spending time filing paperwork.

There are, however, several more fundamental and serious issues which strongly suggest that an electronic document management strategy should be implemented.

Risk Management – if your business became victim of fire, flooding or a terrorist attack, how quickly could you recover/replace critical documents kept only in paper format?

HM Revenue and Customs – VAT records must be kept for at least six years and other tax records for seven years and that could amount to a very large volume of paper.

The Data Protection Act – this Act applies to all organisations and covers all formats of data. All companies holding personal information must register with the Information Commissioner and it is a criminal offence not to do so.

Companies Act – even if a live company is not actually trading, it must maintain its minutes and statutory registers indefinitely.

For advice and guidance on electronic document management please call The IPC Group on 08081 45 46 47.

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