Have you ever really stopped to consider the costs of being disorganized when retaining business files and essential documents?
Think about it: if an executive assistant, earning an average of $52,000 per year, spends just five minutes every hour looking for a file, that adds up to around $5,000 every year.
And many employees spend even more time searching for files, translating to major hidden costs tied directly to disorganization.
Plus – an astounding 83 percent of employees report that they’ve had to recreate existing documents because they couldn’t find them on their corporate network.
While some documents take just a few minutes to prepare, many may take several hours to complete, making the time spent on needless rework significant.
But by keeping documents organized, a file management system helps your team quickly find what they need, reducing the need for rework and saving valuable time and resources.
So – if you don’t want to pay a disorganization premium, then let’s talk about getting your filing system organized.
How Do You Know You Need an Organizational Overhaul?
You’ll recognize a few telltale signs when it’s time to rethink how you archive your business documentation.
Here are a few of the usual suspects:
- Inconsistent file names/nomenclature – Because there’s no consistency in how files are named, your team has no idea how to look for a specific file, and your system’s search function essentially becomes useless.
- Decentralized systems for filing – Where do all your files and documents live? If there’s no organized central repository, you don’t even know where to start looking for a particular file.
- Redundant documentation – Which version of the file is the final version? How can you possibly know if there are multiple copies of important documents saved in multiple places?
How Organizing Your Business File System Can Really Help
Here’s a great example of how good organization makes a powerful difference.
I once worked with a client in preparation for an audit.
Right off the bat, we spent about three weeks just looking for all the information we needed.
The filing system was so disorganized that we encountered all of the issues listed above – redundant versions, scattered file locations, inconsistent file names, etc.
But – when we helped this client redesign their filing system, the next year they were able to complete in about three hours what it took us three weeks to achieve in terms of document collection.
That’s how powerful a good organization system can be.
Where to Start with Organizing Files
If you’ve recognized the need for a new system, that’s the first step.
Here’s the rest of the roadmap:
- Inventory existing files: Begin by reviewing all existing folders and documents. Identify what is needed, what is redundant, and what is irrelevant. Think of this process as cleaning out a filing cabinet – remove the clutter and keep only what’s necessary.
- Establish consistent naming conventions: Consistent naming conventions are critical for easy file retrieval. Talk with your team – and agree on a system that makes sense for everyone using the files. This is critical. You can’t have someone else develop a system FOR your team – they need to take ownership of the system that works for them.
- Create a logical file structure: Work with your team to develop a folder structure that reflects your business’ workflow. This might involve creating separate folders for different departments, projects, or clients.
- Get buy-in from all users: Ensure that all employees who will be using the file system agree on the organizational approach. This is the only way a new system will work – a collaborative approach helps ensure that everyone will actually use the new system. Otherwise, your efforts will go to waste.
- Commit and stay consistent: Once an agreement is reached, make sure the team consistently follows the established system. Regularly review and update the system to account for any changes in workflow or document types.
- Providing training and communication: Provide training for all employees on how to use your new system. This kind of clear communication helps make sure everyone understands and adheres to your newly established procedures.
- Use technology where appropriate: Where you can, leverage file management software with features like version control, access permissions, and audit trails. These tools can greatly enhance data security and efficiency.
Organizing your business files is vital for improving accessibility, reducing rework, minimizing delays, and enhancing data security.
When you commit to implementing an effective file management system, your family business can streamline its operations and boost its overall productivity.
If you’d like some help implementing a file organization system, we would love to help. Reach out today for a consultation with one of our trusted and qualified family business advisors.