However exhaustive it is, Records management is very indispensable for any organization. Orderly kept records are vital in improving the efficiency and profitability of any organization. By records, we mean both records in physical format and digital formats too. The combination of both physical and electronic records is definitely the way forward. Let us understand why it is helpful and how it is mandatory for many niche industries. Why maintain physical records? Each industry has its own mandates to maintain physical records as part of compliance. This includes papers related to financial transactions of the company, legal papers, MOUs, Audit records, account books, information about clients and employees. The period of time, for which you should keep the records differs from industry to industry. Usually, it is anywhere between three years to ten years or even lifetime for some industries. Failing to meet this record-keeping compliance may attract legal actions from authority bodies. In India, there is no unified regulation regarding the maintenance of physical records. Physical Records for Compliance Companies act: 8- 15 years of the record period Income Tax Act 1961: 8 years of Minimum record retention Central Excise & Service Tax: At Least 5years of data retention SEBI regulations: Minimum 3 years to Maximum 8 years. ICAI Council Decision of 1957: Minimum 10 Years of record storage. Even though compliance is the main benefit of physical records, there are some others additional advantages like resistance to cyber-attacks and more authenticity. Also the satisfaction of referring to a hard-copy file and feeling the authenticity is also associated with physical record storage. However, storage of physical records for many years is not as easy as it may sound. Businesses need professional assistance or deep investments in ensuring they maintain physical records in a systematic manner. Rising importance of Digital Records: Digital records make it little easier when it comes to storage as it eliminates time consumption. Anytime Information retrieval and anywhere is one of the primary advantages of digital records. are opting for digitizing their records as it makes the storing and retrieval of files much easier. In a recent survey, 81% of the employees raised the need to access their company records by phone. Digital document filing even brings ease in sorting and categorizing the papers in a synchronized manner. The stress in arranging the documents correctly can be eliminated with newer automated digital tools like record management software. Another key part of digital record management is that they keep sensitive files safe and centralized. As professionals now have the liberty to work from the comfort of home, this digital record storage facility adds up to the benefit. Remote access facility of digital formats makes it an ideal pick for this new normal working culture. Why do you need both Physical and Digital Records? The very answer to the question can be traced back to the title of the blog - digital records for convenience, physical records for compliance. Each of the document storage setups has its own pros and cons. But the main aim of digital records is to make the job of record management easy and physical records for meeting the complications of compliance. In research conducted by logicworks, 88% of the IT experts say that compliance is the biggest concern of companies when coming to the shift to a cloud-based digital record management system. But to have a hassle-free working environment, digital files are much needed. They can contribute to a paperless office and fast recovery of documents. As discussed, storing years of physical records is not easy for all organizations. Kayman Vaults offers its record management facility for people like you. Kayman can help your business with both physical and digital document storage systems where you can store your files with 100% security. The physical storage facility is pest-free and climate-controlled to ensure maximum protection to your files. Also, a robust tracking mechanism is deployed in the facility to trace the people who access your records. Kayman - Documenting peace of mind.