Record keeping is the process of maintaining accurate, detailed information about the financial and operational actions of a business. As we may understand the process of creating, storing and maintaining records involve costs for a business, it is imperative that a business budget the costs involved in maintaining business records. Here are few considerations for budgeting your records-keeping Ascertain Goals of your records keeping Though it is understood that records management is an important function of any business, decide for yourself how it is aligned with your business goals. What are your priorities when it comes to records management? Improving Decision Making? Protecting Customers Data? Complying with multiple records keeping compliance? Reducing Administrative Expenses? Freeing-up Office Space? Preserving records against any eventualities? Once you are clear with the goals about records management, you will be able to proceed with the appropriate budgeting plan. The more closely records management purposes are tied to budget or other goals established by your organization, the more likely your project is to be funded adequately. Assess your existing state of affairs & desired state It all begins with clearly understanding the present state of affairs. Before we jump into demanding a fair share of your annual administrative budgets, it is essential to understand where we are so that we can very well plan to be where we want to be. Engage a team of your employees from multiple business functions and understand how the records are being currently maintained. OR Hire a records management consulting company or information management professionals who can do this with a fresh perspective. By doing this exercise, you will understand current processes better and also the gaps you want to address. While doing this exercise, you will also be able to research the evolving compliance, industry best practices etc. Analyze the Costs Involved Based on the assessment of your existing state of affairs with respect to records management, you will know the gap areas. Now it is easier to put together the list of changes you want to implement in the system and work out financials involved. While calculating costs of records management, consider following pointers Infrastructure changes Procurement of Software & Equipment Hiring & Training Costs Outsourced Records Keeping costs Cost of Records Digitization Transportation Costs Labour Cost & Unnoticed Costs involved in Records Management etc. Approve Budget & Approach with Priority in Mind By now the comprehensive understanding of what has happened and what is about to happen is clear. Based on the detailed study, it is quite evident that we may have captured all needs and wants when it comes to implementing the ideal records management process. However, it is important to prioritize and implement everything in a phased manner. Because by end of this exercise you need answer for the magical question What’s my Annual Budget for Records Management? Be prepared to encounter lots of questions. It is good for greater quality. The more discussion happens in this stage the more it will be helpful. Once a price range is put together for each of the needs and wants, the overall budget can be put together. After it is phased out, it will be a lot clear on how much to spend and in what timeline. Also ensure if you have factored in any unplanned emergencies and how you will be taking care of them. Estimating such circumstances will enable the increase of precision of records management budget over time. This will improve efficiency, compliance and profits. Analyze, Adjust and optimize Before even rolling out the approved budget make sure you have a clear measurement plan in place to track each and every expense. Also ways through which how you will record the benefit / outcome of each of your records management improvement plan. It may happen that there may be new additions or deletions to your approved records management budget. But you will be able to easily adjust it as it is well-structured, phased out and pre-approved for a full year. Re-Assess the captured notes from previous year and quarters to get insights on optimizing your records management budgets. Getting insights from all the stakeholders – employees, records management companies – records storage facility – Government body officials etc. is crucial. Ask for Professional Assistance It is quite alright to seek professional assistance when it comes to plan, budget, implement records management. Consult Records storage and Management companies like KAYMAN Records Management Services that can offer valuable insights from their expertise in managing records of other businesses in your industry. Get a Records Management Consultation Documenting Peace of Mind.