The Pros and Cons of an Electronic Records Program

Tax Professionals Resource
September 20, 2012 — 1,052 views  
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Electronic records programs are becoming more common in all types of
businesses. When considering this type of records management, it is important
to consider both the benefits and the drawbacks that may be incurred from
installation. Computer records can be cheaper to maintain, but the cost of
installing the software and training the employees must be taken into account,
too. 

What are the benefits of an Electronic
Records Program?


One of the main benefits an electronic records program offers is the ability
for locations to share information. Schools that have more than one campus can
look up an individual's information with the click of a button instead of
having to call across town or request records from another location, which can
take days to process.

An electronic records program is also a greener way to do business. By keeping
records electronically, paper waste is greatly reduced. With paper documents,
there are often copies of everything that is written down so there are multiple
sheets of paper for one piece of information. 

Keeping records electronically will not only cut the paper waste, but it will
cut the overhead cost of purchasing all that paper. Records can be passed back
and forth between computers and campuses without ever having to print one piece
of paper out. 

What are the drawbacks of an Electronic
Records Program?


One con of the electronic records system is vulnerability. If the system should
ever be compromised in any way, very personal information could fall into the
wrong hands. There are several safeguards that companies can take to prevent
this, but it is always important to remember that security is top
priority. 

Electronic records systems can be costly and time consuming. Often the software
is installed and then the entire staff has to be trained on the new system.
This opens the doorway for not only human error, but if the software is new,
there may also be system bugs that have to be worked out as well. 

The installation of an electronic records program can be beneficial to a
business, as long as they are aware of the risks that may be involved. Once the
staff has been properly trained and all of the kinks have been worked out of
the software, records management is faster, easier and can be accessed or
edited in minimal time. Computers are the way of the future and having a
computerized records system may be the best option in the long run.

Tax Professionals Resource