Records Management for Small Business and Sole Operators

I've been reflecting on the times I've worked with small organizations and when I ran a small consultancy. What were the key factors that ensured we maintained records integrity?

Back then, it was primarily to satisfy the Tax Department, as well as ensure our clients were satisfied with our services. Repeat business was an attractive bonus to our service, and being able to refer back to prior work delivered proved most useful. Most of our records were physical paper. Even at that time, I kept an electronic index of my records. They were physically stored in labeled and named files within hanging folders in a filing cabinet until they were eventually archived into boxes (supplied by Brambles Records Management, who then were rebadged as Recall Information Management).

Records passed expiry date were duly disposed of via an office shredder. I didn't store records offsite. And some of those files I continue to keep because, although they no longer have a legal necessity, they hold historical significance regarding my working life and may one day be informative for my progeny's enquiring minds.

Today, practices have evolved to keep pace with the current world of technology. Paper records are becoming less attractive to maintain in their original format due to the volume of space they occupy. Also, they are usually born or received digitally, and lack the mobility that digital records offer. Many of us who consult need to access content when we are onsite. Having our laptops ready to securely access our digital content is useful when we need to reference information to support a client’s needs.

What are the practical considerations to ensure our records' integrity and availability for use?

How do we ensure that the lifecycle of our records is maintained so that only records of enduring value are kept?

How do we protect against unlawful access?

These questions are all a pressing concern for sole and small business operators. Without their records, their business could fail very quickly.

Maintaining records integrity and ensuring lifecycle preservation require systematic actions, especially when records are stored on shared network drives, SharePoint, or Microsoft 365 (M365). Many use all of these options today. While these platforms are not ideal and are not bona fide records management systems, they may be the only available options for some organizations, particularly small businesses. There are some actions you can take to make it work for you.

As organizations grow, I do, however, recommend investing in a certified records management system. A certified records management system is far more satisfactory in proving the authenticity of the record when you are questioned and required to deliver evidence. When set up properly, the system will contain the required metadata and audit trail to support that authentication.

Case Study – Melbourne Single Business Owner

About 25 years ago, I implemented a system for a one-person organization. When I checked several years later, it was still effectively meeting his needs. The system, called DocFind, was not widely adopted in Australia but was ideal for his small business. It only cost $200 per year to license, and allowed me to:

1.???? establish a business classification scheme structure,

2.???? apply disposal to the records, and had a

3.???? good search function.

The makers of RecFind developed the system with small businesses in mind. The client was pleased with the outcome and found it to be cost-effective for his business needs.

Working in the evenings and on Sundays, it took about three months to set up everything required for this client. I regularly checked in with him over the next two years to see how he was managing.

The system delivered what he needed. He had a structure that he understood, which kept all similar content organized. He was able to manage his time effectively because his information was readily accessible.

At that time, he even had a desktop scanner set up to save documents, receipts, and invoices into the system. His wife assisted him in the business with the administration.

The use of scanners for digitizing records in small businesses started gaining traction in the late 1980s and early 1990s. This period coincides with the broader adoption of personal computers and office technology in the business environment.

By the mid-1990s, as the cost of scanning technology decreased and the availability of supporting software, such as document management systems, increased, small businesses began to more widely adopt scanners to manage and store their documents digitally.

This shift was driven by the growing need to efficiently store, retrieve, and manage increasing volumes of documents and records, along with the rise of digital workflows that improved overall business operations.

Case Study – Melbourne Non-for-Profit Organization

Another example I recall involves my sister-in-law, Norma, who set up a full records management program for a non-profit organization in Melbourne using Microsoft Access as the database. She established this system 15 years ago, and it remains functional today. Norma's success largely stemmed from her strategic engagement with stakeholders at all levels, including gaining support from the CEO and executive management. She conducted thorough discussions with stakeholders to understand and integrate common language into the records management system.

Norma developed a business classification scheme, folder naming conventions, controlled document templates, and document naming conventions that would have enduring value. She also applied disposal rules to the folders and created a robust security system that included user monitoring and an audit of records. She provided monthly reports to the executive team, ensuring transparency and alignment with organizational goals.

Her program skillfully balanced the management of both physical and digital records. Norma managed the complete lifecycle of records from their receipt into the organization, capture of user content exchanged internally and externally, to their final disposal and preservation. She tailored procedures and training for both executives and regular users, addressing any gaps in understanding or practice. This approach helped embed her records management program into the organization's culture as business as usual.

Originally intended as a 6-month assignment, Norma's contribution was so valued that she continued to work with the organization for 10 years, until her retirement in 2019. This longevity and effectiveness demonstrate the impact of a well-executed records management strategy that is supported at the highest levels and thoroughly integrated into daily operations.

My tips for Records Management Governance and Management – Small Business

Using the examples from the case studies involving Norma and the small business implementation of DocFind, we can derive several core records management principles that are essential for governing and supporting sound practices in small businesses. Here is a list of these principles:

1.???? Executive Support and Stakeholder Engagement: Gaining support from top management and engaging with all stakeholders is crucial for the success of any records management program. This ensures alignment with organizational goals and secures the necessary resources and commitment. If you are a one person operator educate yourself on records management principles and commit to practice them.? Membership of the RIMPA Global Alliance https://www.rimpa.com.au/ offers access to free or low cost support too. It is also tax deductible. I have held a membership for decades.

2.???? Understanding and Integrating Organizational Language: Records management systems should reflect the common language and practices of the organization to ensure clarity and usability for all users. For the one person operation stay true to language that is enduring. Avoid abbreviations or acronyms.

3.???? Comprehensive Business Classification Scheme: Developing a robust classification scheme that organizes records systematically according to business activities helps in maintaining order and facilitates efficient retrieval.

4.???? Consistent Naming Conventions: Implementing standardized naming conventions for files and folders ensures consistency, aids in searchability, and enhances the management of digital and physical records.

5.???? Security and Access Controls: Implementing strict access controls and security measures is crucial to protect sensitive information from unauthorized access and ensure data integrity. For sole operators, it's essential not to share your computer or business environment with anyone else. This isn't a space for children to play games or browse the internet. Accidents can occur, and the risk is too high to share with others.

6.???? Setting up a Secure Environment within M365: Consider getting professional support. I outsourced the purchase of my laptop, Microsoft license, security, and support to a reputable service provider based on recommendations. They handle the technological security threats and the updating of patches. My responsibility is to adhere to established behavior protocols to ensure I do not inadvertently cause a security breach through poor practice.

7.???? Regular Auditing and Monitoring: Actively monitoring the use and auditing the management of records are vital to ensure compliance with policies and procedures and to identify areas for improvement.

?Norma diligently practiced this, as have I in my previous roles across both small and large organizations. Regular auditing provides invaluable information that helps users embed good practices and informs executives about where risks and support are needed. It is rare to find users deliberately ignoring organizational practices. More often, non-compliance stems from a lack of understanding, missed training, or workload pressures that lead them to cut corners with the intention of addressing these gaps later—though often, they fail to do so. When you show understanding and support rather than judgment, you gain an ally. I have had managers and users thank me for bringing issues to the executive's attention as it highlighted the clear need for additional resources, at least temporarily, in their work area.

8.???? Lifecycle Management: Managing records from their creation or receipt through their active use, storage, and eventual disposition or preservation is essential for effective records management.

9.???? Disposal and Preservation Rules: Applying appropriate disposal schedules and preservation rules based on legal, regulatory, and operational requirements helps manage the volume of records and protects important historical documents. Set this up at the creation of the folder (container) that will hold the records you retain.? When you close the folder apply a review date. Program a review date into your schedule. Ensure you make a record of the disposal action and the reason for its destruction.

10.? Training and Capacity Building: Providing tailored training and continuous learning opportunities for all users to ensure they understand and can effectively use the records management system. When new employees join your team ensure they receive induction training before they begin to use the system. Revisit a month into their appointment. They are bound to have further questions. Encourage them to ask you or a ‘buddy champion’ for advice when in doubt.

11.? Integration of Physical and Digital Records: Ensure that both physical and digital records are managed cohesively under the same system to maintain consistency and full lifecycle management. You may have physical records related to more recent digital records. Capture metadata about the physical records into your record-keeping system. This will provide an index of your paper records and enable you to create a cross-referenced link between the old (physical records) and the new (digital records) so context is not lost. History remains intact.

12.? Adaptability and Scalability: Designing a system that can adapt to changing business needs and scale as the organization grows ensures the long-term viability and relevance of the records management program. When you design your system or records management program think long term. This is the foundation that you will build on for 10, 20 or more years.? You do not want to go back to ground zero and have to do a costly recreate exercise. If you consider the above principles and embed a strong governance you will have a program just like Norma’s that has stood the test of time and continues to be effective well after her retirement.

13.? Transparency and Reporting: Keeping the management and other stakeholders informed through regular reporting on the status, issues, and achievements of the records management program fosters transparency and ongoing support. Keeping your users informed means that record-keeping stays front and center in their minds. It is part of their everyday business as usual. They own responsibility for it. And that is what you want for business success.? You can trust the integrity, and reliability of the records to support your business now and into the future.

These principles form a solid foundation for small businesses to establish, implement, and maintain effective records management practices that align with both operational needs and compliance requirements.?

This is just a glimpse into this topic. We will explore deeper when I share with you the basics around creating a business classification scheme, naming conventions for documents, and tips for user business rules. However, I will save that for another article.? Right now the flu bug has reared its ugly head and I need to crawl back into my bed.

I hope this content is of value to you. Please let me know what you think, and what you would like me to share with you in future posts. Until next time, keep well.

#recordsmanagement

#recordsgovernance

#informationmanagement

#networkdrives

#M365

#DocFind

#RecFind

#Informationsecurity

#Smallbusiness