Whether your document filing system consists of stacks of papers “strategically” cast in various corners throughout the office or “meticulously” shoved into rows of lumbering file drawers, chances are that your office could benefit from a comprehensive look at your filing system. In short, file management is the process of storing and tracking the loads of documents a business handles daily which include but are not limited to forms, reports, emails, invoices, and other sources of information.

As a business expands, the mass of information grows as well, with the ability to gain immediate and painless access to particular documents becoming increasingly more complex. In the United States where companies face some of the strictest compliance regulations regarding documentation, upwards of 80 percent of corporate information lies in poorly structured, disorganized file systems. Even though managing files may be one of the most onerous, dreaded tasks of the typical office worker, it certainly may be one of the most important. If information is not accessible, lost, or misplaced among heaps of paperwork, a negative impact on the operations of the company can result in the form of reduced productivity, lost time, and even legal problems. With regards to environmental, health, and safety policies, for example, regulators have strict guidelines on what documentation needs to be available to them. Heavy penalties may result if a regulator comes in and, after several searches through the mountains of paperwork; you are unable to provide necessary documentation they require.

Taking a proactive stance in regards to file management will ensure that information is always available on demand. Here are a few benefits of a good file management system:

Boost Efficiency and Productivity
Time spent locating misplaced or lost documents counteracts efforts to improve efficiency. A good file management system with an effective index can aide any organization in the retrieval and delivery of information to users as quickly as needed. Once one is established, labor requirements for the creation, organization, and retrieval of information can be dramatically reduced.

Reduce Operating Costs
Managing files costs money. Administrative dollars are often wasted on excess filing equipment, space in offices, and staffing to maintain or search for records. An opportunity exists to reduce costs associated with filing as well as improve service to clients or other parties involved.

Control the Expansion of Files
While having all necessary information available is beneficial, one major caveat to this is that proactive file management isn’t about hoarding every business-related document that comes across one’s desk. It’s more about designating what needs to be kept and for how long. Although the retention of some documents may be necessary, an accumulation of superfluous paperwork may hinder the ability to operate efficiently.  Limiting the generation of unnecessary records and destroying inactive ones can greatly reduce your paper load.

Ensure Regulatory Compliance
Amidst the abundance of laws and regulations that companies face, having an effective file management system in place will be beneficial for making sure that you are in full compliance. Being able to easily access necessary documents for regulators will help you to avoid costly fines and penalties for being unable to provide proof of documentation.

Recommendations
In preparing a proactive approach to your file management system, consider the following recommendations:

• Outline your filing system prior to implementation
• Arrange files properly either alphabetically, numerically, or in relevant groups
• Label files clearly and accurately
• Allow for easy, user-friendly access
• Develop a retention schedule policy
• Plan proper destruction of unnecessary files
• Set up any existing electronic record or email storage to mimic your paper files
• Apply your filing system throughout your company

In light of increased compliance laws and regulations that have appeared in recent months, the task of managing a filing system has become increasingly complex. Many companies are turning to records management software as a way to gain control of the increased volume of records. Although this can help, if efficient file management policies are not in place to start with, the software will be worthless.

In the future, as you develop a proactive file management system, consider going paperless or providing a portion of your organization’s necessary documents online by engaging in an internet based document managing system. The value added to your company will be greatly increased as employees and therefore clients will have real-time instant access to essential information without the hassle of searching through the piles of papers strewn about in those “strategic” locations throughout the office.