How Asset Tracking Helps
Businesses Remain Compliant
and Avoid Stiff Fines
In the world of business, auditing is a necessary but often frustrating reality. Companies across various industries such as information technology, healthcare, educational institutions, security firms, law offices, emergency service groups, and non-profits must all undergo routine inspections, which can take place sometimes just once a year or as frequently as once per quarter. Last-minute audits also occur when third-party, independent vendors or official organizations want to verify the current operating status or financial outlook of companies to ensure regulations are being met.
Despite audits being a commonplace event in today’s business landscape, many companies simply aren’t prepared for them. When businesses don’t have the proper paperwork or files available, the auditing process becomes a much more stressful, time-consuming, and costly situation than it has to be. In most cases, businesses are left scrambling to reassign resources and pull together the required information to conduct an audit and satisfy the requirements of the auditing body, draining the productivity and efficiency of the company as a whole during this time.
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A lack of preparedness for audits can lead to severe consequences for businesses, including (but not limited to) non-compliance issues and related fines or fees. According to the Association for Information and Image Management, these consequences are the top two risks companies say they’re concerned about when business information isn’t properly governed. Essentially, companies who fail to keep accurate, up-to-date information on their business operations and assets will have to deal with the very real likelihood of having to pay millions of dollars in fines or deal with the aftermath of regulatory actions, both of which could negatively impact company growth for years to come.
Fortunately, audits don’t have to be as taxing and time-consuming as they frequently turn out to be, nor do businesses need to worry about facing non-compliance concerns or paying unexpected fines. Instead, companies can implement a solid asset tracking system to help them avoid the scramble during audits, as well as the possibility of being out of compliance and needing to pay a fee. A proactive approach to asset management and tracking may even lead to fewer audits by outside vendors.