When it comes to running a business, documents are a key part of the process, providing (among other things) records of assets, transactions and contracts. It was not that long ago that business processes were wholly analogue – think hard copies of data and information to later be stored in piled-up boxes or bulging filing cabinets. While a few businesses may still operate this way, the majority have moved their record-keeping online, with data and information stored digitally, at the ready when needed.

Most digital filing tools – even very simple ones – bring immediate benefits to a business. Electronic record-keeping makes it easier for organisations to find their information and integrate it into various business processes, as well as automate those processes. Because electronic documents are so accessible, it allows for easy collaboration and promotes compliance, such as for audit, legislation or litigation.

Perhaps most importantly, electronic record-keeping helps businesses to mitigate risks. Certainly, the security of the information in their care is one of the greatest concerns faced by businesses today. Organising, backing up, managing, storing, and protecting such data requires infrastructure and technology to which not all companies have easy access. Physical documents are prone to damage, loss or simple human error in the form of misfiling. In addition, paper records deteriorate over time. Electronic record-keeping, on the other hand, enables organisations to securely protect and store these crucial records, and access them easily on demand.

There is also the benefit of image scanning and optical character recognition (OCR), useful features for businesses that have a lot of paper records they would like digitalised. While scanning a paper document into a digital file such as a PDF is fairly simple, OCR is more advanced, reading the text of an image and making the content of the image searchable. Some of the best document-management systems use OCR to fill in metadata automatically, improving the document’s searchability even further.

Mobile-device access is another feature made easier by technology, as many document-management systems these days have a dedicated mobile app. Document ‘scanning’ is as simple as taking a photo with your phone – often done through the app itself.

There is a wide array of document-management software available today, with some of the most well-known and easily accessible being Google Drive, Google Workspace and Google Docs, OneDrive, Microsoft 365 and Dropbox.

Choosing an appropriate electronic document-management system for a business will depend on the level of control, collaboration and flexibility needed. For instance, should it host on-premise or in the cloud? How scalable does the solution need to be, should it need more storage space? Does it need extensive document control – access hierarchies, auditing capabilities, version governance, and approval and issuance protocols – or only simple document management? And lastly, the cost.

‘When it comes to technology and record data management, the power of the digital content life cycle is inherent in data, and the benefits are endless,’ says Shivan Mansingh, CFO of Metrofile, a leading records and information management specialist in Africa and the Middle East.

Metrofile works with clients on the digital transformation of records across the full paper-to-digitalisation spectrum. ‘AI and machine learning enables end-to-end management and tracking of physical and electronic records, while maintaining their integrity and authenticity. It also delivers accurate classification, retention and disposal of information. This helps with detailed reporting and precise audit trails for end-to-end visibility, and more importantly – seamless integration with other enterprise applications to simplify content sharing and collaboration.’

A clear benefit of cloud-based systems, says Colin Timmis, country manager of Xero South Africa, is dexterity. ‘The instant nature of cloud-based systems, whether in record-keeping or document management, enables firms to be more agile in their services,’ he says. ‘Record-keeping and document management through cloud technology is a secure way to store and process information because the data lives online on secure servers – as opposed to on your hard drive.

‘When collaborating with other users who will be using and viewing private business data, the platform allows you to have complete control of different users’ level of access. This is much more secure than the old-fashioned way of emailing your files or sending out a USB stick with your data on it. With cloud-based software products, companies can ensure that the security and privacy of data are always airtight.’

Cloud technology is helping businesses streamline their financial-management processes, adds Timmis, enabling them to manage everything from one place, anywhere and any time.

‘Traditional accounting technology is limiting in both the information and accessibility it provides, yet cloud accounting software keeps small business owners connected to their data and their accountants in real-time, while also integrating with other business-critical apps.’

One of Xero’s latest offerings is integration with the South African Revenue Service (SARS), enabling businesses to prepare, store and submit VAT returns to SARS from just one platform. ‘This means greater efficiency, fewer errors, reduced admin and better control over their finances,’ says Timmis. ‘Having the right technology to automate tax management means less paperwork, fewer mistakes and a compliant, stable business.’

Converting paper records to digital format has a number of legal and risk implications, however, and a company could be exposed to serious risks such as data breaches, information loss and legal action if this process is not handled properly. Moreover, there are various legislative and regulatory requirements regarding record-keeping and storage.

In South Africa, for instance, regulations and laws governing the management of information and records include the Companies Act, the Financial Advisory and Intermediary Services Act and various Johannesburg Stock Exchange regulations, as well as the Protection of Personal Information Act (POPIA), South Africa’s comprehensive data protection legislation, and even the General Data Protection Regulation, the EU regulation on data protection and privacy.

Taking into account the various requirements of POPIA when moving records from paper to digital, and destroying the paper versions, is crucial.

‘The introduction of the POPI Act in South Africa, coupled with the continuous risk of cybercrime, data management and data security are more important now than ever before,’ says Mansingh. ‘At Metrofile, we assist customers in their efforts to comply with all relevant legislation across digital and physical content types.’

Year by year, technology continues to advance, with blockchain also shaking up the space. According to research firm Gartner, records management is one particular blockchain business initiative with great benefits. The technology has the potential to impact all records-management processes and extend their capabilities, and has extensive implications for securing and authenticating intellectual property at a lower cost but higher efficiency.

Consider, for instance, the smart contract, essentially an agreement between two people in the form of computer code. Smart contracts run on the blockchain, so they are stored on a public database and cannot be changed. Moreover, all transactions that happen in a smart contract are processed by the blockchain, which means they are executed and sent automatically, without a third party or ‘middle man’. They are a faster, cheaper and more secure way of executing and managing agreements. Smart contracts can be used in various fields, including healthcare, supply chains, financial services and government voting systems.

Mansingh says Metrofile is evaluating Ethereum and Tezos smart-contracts platforms. ‘Blockchain has the potential to reduce transaction costs and increase the efficiencies of supply chains by automating document exchange through smart contracts,’ he says. ‘In international trading, use cases include more efficient and trustless letter of credit [processes], source tracking, [and] automation of customs and excise payments.’

Timmis believes there is great value in blockchain, as it can be developed to fit into many practices, especially finance management. ‘Through its complexity and high level of encryption, integration with blockchain can make transferring valuable assets more secure,’ he says. ‘It can also be used for more effective fraud prevention and other security-focused tasks.’

By Tony Muir
Image: Gallo/Getty Images