3 Document Storage Mistakes Auto Dealers Should Avoid
Auto dealers, like any other organization, need to have a strong document management system. The cost of an inefficient document management system can be high.
Without proper records, a company risks paying hefty fines due to noncompliance with legislative requirements. That’s why document management should an important consideration for all types of businesses, including auto dealers.
Let’s take a look at some of the mistakes that auto dealers commonly make regarding the storage of confidential company data.
Mistake 1 — Not Having a Document Storage Policy
A lot of auto companies don’t have a document storage policy. They don’t deem it worth the time and effort to craft a policy for storing documents.
The fact is that a document storage policy is critical for effective document management. The policy should include the process of storing and retrieving documents. It should also include security measures to ensure the protection of documents.
A detailed document retention policy will help in proper storage and protection of documents. It will ensure that the document storage process meets the legal requirements for document retention. The result will be reduced risk of a fine or penalty due to noncompliance. Moreover, it will ensure the protection of documents against loss, pilferage, or theft.
Mistake 2 — Not Making Digital Copies
Every paper document should be scanned and saved in a digital format such as PDF, DOCX, or JPEG. However, a lot of auto dealers simply file away the paper documents with little thought given to keeping a digital copy.
A digital copy will ensure a permanent record of a paper document. This will prevent a lot of legal trouble in the future. Paper documents can become misplaced or destroyed by accident. Having a digital copy will ensure that the file is saved and recovered whenever required.
Keeping a digital copy is particularly important for documents that need to be retained for an extended period. These include company permits, tax records, shareholder agreements, leases, board meeting minutes, and bylaws. Also, consider making a digital copy of job applicant information, employment files, and bank statements.
Mistake 3 — Not Opting for a Cloud Storage Solution
A lot of auto dealers keep a digital copy of the records on the local servers. This is a grave mistake that you should definitely avoid.
Cloud or online storage will not just save you storage costs, but it will also ensure maximum protection of documents. You won’t have to maintain backup servers for storing legal documents that will save you a lot of costs.
Also, keeping files online will ensure that your files remain perfectly protected. Online storage service providers rely on the best security practices to secure customer data. They also make a regular backup of data. This ensures that your files will be recovered promptly in the event of a system failure.
Documents are an integral part of a business’ workflow. A strong record retention process will ensure total compliance with all necessary regulatory requirements. Make sure that you keep the documents secured by avoiding the mistakes highlighted in this post.