Businesses often experience difficulties because of poor filing practices. Filing system ideas are ever evolving and offer tangible solutions for poor record keeping habits. Whether paper or digital (or a combination of both), a diligent and functional filing system is the backbone that supports all other operations in a company. It provides quick access to information, ensures compliance with relevant regulations, and saves time and effort.
Although many large corporations have digital or hybrid paper-digital filing systems, a lot of small businesses do not. These enterprises often face challenges such as unorganised files, employees wasting time trying to find information, or documents getting lost. This article explores effective paper and digital filing ideas and practices to help businesses get and stay organised.
Your different system types for documents
Different departments or functions rely on specific types of filing methods and processes to run smoothly. How you approach this depends on the nature of your operations.
Invoicing system
This is the way that a business records, manages, and pays for incoming and outgoing services and goods. Errors or misplaced purchase orders, invoices and payment confirmations lead to financial losses. Depending on your business activities, the documents in an invoicing system include:
- Quotations and estimations.
- Pro forma and tax invoices.
- Receipts and/or sales receipts.
- Credit notes.
- Purchase orders.
A company needs to properly process and file these documents to keep a finger on the pulse of both capital and operational finances.
Accounting system
An accounting system deals with all the financial matters of a company and captures and manages all finance-based documents. These include:
- Transactional documents, such as invoices and receipts.
- Human resource expenses.
- Journals and ledgers for day-to-day, month-to-month, and year-to-year records.
- Trial balances (all debits and credits) pertaining to specific calendar cycles. Quarterly business reports are an example of this.
- Financial statements, which incorporate all financial activities.
Your business must diligently file and organise these documents to avoid financial loss and possible legal consequences. Computerised accounting programs are efficient and less time-consuming.
CRM system
A customer relationship management (CRM) system is a software solution that helps businesses connect with and maintain productive relationships with their customers. It helps companies track queries and follow up on outstanding issues in good time.
When this process is neglected, it can be a monumental task to set things in order. Documents in a CRM system include:
- Financial references, such as quotes, receipts, invoices and purchase orders.
- Spreadsheets to trace the start, progress and finalisation of queries.
- Reminders for follow-ups.
- Promotional material on new or updated products.
- Information from sales staff and customer care agents.
- Recorded calls.
- Completed company forms.
- Text messages.
- Emails.
HRIS system
Human resources (HR) departments typically have a heavy document load. A human resources information system (HRIS) organises and manages all documentation related to your employees. These include:
- Appointment letters and employment contracts.
- Sick, annual, and special leave documents and schedules.
- Remuneration packages.
- Promotions or demotions.
- Absenteeisms.
- Disciplinary matters and other incidents.
It is often necessary to combine paper-based and digitised filing systems to keep your HR department shipshape. HR filing system ideas and methods help business owners with this task.
Organising your physical document infrastructure
A business’s physical document infrastructure ranges from something as simple as a single filing cabinet to rooms filled with shelves. The success of a paper filing system relies on adequate cabinets and shelving and the colour coding of different processes or functions. This type of infrastructure limits or eliminates lost documents and compromised confidential information. Here are some practical tips for an effective physical document infrastructure:
- Assess your current filing infrastructure. Identify problem areas and the strategies needed to correct them.
- Look at the best practices and implement those that are practical for your business.
- Ensure that you have the necessary cabinets and shelves. Also, consider lock-up ones to boost security.
- Establish a retention policy for how long documents must be kept before being shredded.
- Digitise your filing by implementing a scanning and digitisation strategy.
Organising for easy retrieval
This requires a prioritisation of filed documents. You must determine which documents are used or accessed most often. Your system must ensure that these can be retrieved easily to avoid inefficiency.
In physical filing systems, it is helpful to alphabetise and colour-code documents. This speeds up retrieval. When you’re using a digital system, your employees will need training on how to operate the hardware and software.
Choosing a filing matrix
Prominent filing system ideas for small businesses spotlight the importance of choosing the right filing matrix. This deals with the method of categorisation you use in your filing system.
Select a digital, paper or hybrid paper-digital system, and then decide on the rules of categorisation. Do you need an alphabetical or numerical system? Should documents be sorted according to subject matters and topics? Or, are different matrices applicable to different zones or departments?
Added extras: colour coding, dividing, expiration dates
As mentioned, colour coding helps with identifying documents at first glance. Other extras include divisions in files to earmark certain documents falling under the same category, such as different quarters in a financial year.
Expiration dates not only help with discarding or shredding, but also ensure that your business stays in line with legal requirements.
Using a document management system
A digital filing system eliminates a lot of the ‘red tape’ and time that goes into setting up and maintaining a paper-based filing system. Many office filing system ideas base best practices on streamlined digitisation. A digital filing system is more cost- and time-effective than a physical paper one.
It is important to use recognised software when implementing a document management system. With these programs, you can quickly and easily upload, search, back up and recover documents.
Initially, you may need to invest some capital to implement a document management strategy. It does, however, streamline business processes, which in turn boosts productivity, customer satisfaction and brand reputation.
Planning regular filing system organisation sessions
Communication is key to the successful implementation of any strategy in a business. The same applies to your filing system.
It is important to keep staff in the loop. Schedule regular reviews and meetings to ensure that your filing strategy is on point. Train staff on the use of both physical and digitised systems.
Choosing the right document management partner
An effective filing and document management system supports the operational and financial success of your business. It saves you time and money while keeping your customers happy. Secure document storage solutions and document scanning services streamline both your paper and digital systems.
Professional document management services are invaluable. An expert partner such as Shredall SDS Group helps you manage documents and stay legally compliant. Contact us today and find out how we can help you with an on-point filing system.
