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2. To prepare statement of true conditions: The true condition of a business can
be known through up-to-date records. This is necessary to make the necessary
changes in business plannings and strategies.
3. To make comparison: Records help make comparison of the following types:
i. Comparison between one period of time and another
ii. Comparison between different product lines and

iii Comparison with firms operating in the same line of business.
Such comparison can be described as the analytical function of records which
has become very important in today’s business.
4. To detect errors and wastes: Errors and wastes can only be known with the
help of proper record management. Record management is a control function
which helps evolve techniques to eliminate errors and wastes.

Importance

Record management has the following importance:
i. Basis for future planning: It is only one basis of the records that future
activities of the organizations can be planned. Records are the basis for future
reference. Planning and policy making are based on records.
ii. Fulfill legal needs: Records act as evidence in settling disputes, legal and
court cases. Record management provides history of records which are essential to
meet legal requirement of an office.
iii. Helps in decision making: Decision making is the most important task in
an organization. A single decision can change entire path of the organization. Past
records are the important tools for decision making. No management can take right
decision without necessary facts. So, record management is helpful in taking prompt
decision in an office.
iv. Detection of errors and wastes: Errors and wastes can only be known with
the help of proper record management. Record management is a control function
which helps evolve techniques to eliminate errors and wastes.
v. Reputation of organization: A good record management provides essential
records as per requirement to take quick decision and prepare plans and policies
which helps to increase the reputation of the organization.

Types, use and disposal of records

The records should be destroyed after they lose their utility. Documents have their
certain retention period. After the expiry of such period, they should be disposed

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