How can LuitBiz DMS help companies in USA?

In USA, with laws and regulations like HIPAA, NARA, GLBA, FINRA, FACTA, SOX, SEC, GMP and the HITECH Act, etc, the need for a well-structured records management system in business is paramount. Enforcement for noncompliance can be severe, including subpoenas, legal actions, monetary fines, civil penalties, criminal penalties, and administrative sanctions like license revocation or asset seizure, depending on the nature and severity of the violation. Some of the document related compliances required in USA are:

 

Requirements under the Federal Records Act (44 U.S.C. 31)
  • The Federal Records Act (44 U.S.C. 31) and corresponding Code of Federal Regulations (CFRs) require all federal agencies to maintain records that document their activities, file records for safe storage and efficient retrieval and dispose them off according to agency schedules
  • Non compliance can lead to penalties for federal agencies, including the potential for civil monetary penalties, and for individuals, including potential prison time of upto 3 years
Requirements under National Archives and Records Administration (NARA), 2016
  • All Federal agency records need to be preserved in a secure format and be readily available during inspections to authorized personnel.
  • Disposal of records should be recorded and stored for future reference.
  • Non-compliance can lead to fines, imprisonment, & forfeiture of office, as well as legal & reputational risks for the company and its employees.
Requirements under the Gramm–Leach–Bliley Act (GLBA), 2003
  • Financial records must be properly secured, safeguarded, and eventually completely destroyed so that the information cannot be further accessed
  • Access must be controlled to protected financial data via means like unique user-rolls and user-based permissions
  • For non-compliance, financial institutions face fines of up to $100,000 per violation, while officers and directors can be fined up to $10,000 per violation and face potential imprisonment of up to five years.

 

Requirements under the Health Insurance Portability and Accountability Act (HIPAA), 1996
  • Health records should be completely controlled and only authorized personnel should have access to electronic health records
  • Ensure the confidentiality and safeguard of health information when it is electronically transmitted to ensure it is physically, electronically, and administratively secure
  • HIPAA non-compliance can result in civil penalties ranging from $100 to $1.5 million per violation, depending on the severity and nature of the violation, with potential for criminal penalties including fines and imprisonment.
Requirements under the Sarbanes–Oxley Act (SOX)
  • Access must be controlled to protected financial data
  • Financial control and risk mitigation processes must be documented and verified by independent auditors
  • Business records must be kept for not less than five years
  • Non-compliance can lead to significant penalties, including fines up to $5 million and imprisonment up to 20 years for executives, and potential delisting from stock exchanges for companies.
Requirements under the SEC Rule 17A-4
  • Records that must be maintained and preserved must be available to be produced or reproduced in digital format along with the different versions of the documents
  • Original copies of all communications, such as interoffice memoranda, should be preserved for no less than three years, the first two in an easily accessible location
  • Non-compliance of recordkeeping practices in accordance to SEC standards attract significant monetary penalties and even imprisonment

 

Requirements under the Good Manufacturing Practice (GMP) Act
  • All documents related to the manufacture of intermediates or APIs should be prepared, reviewed, approved, and distributed according to written procedures in paper or electronic form.
  • Revision histories of all documents and audit trails must be maintained
  • Non-compliance with GMP regulations can lead to serious consequences, including fines, product recalls, and even criminal prosecution, with penalties ranging from warning letters to substantial financial penalties and potential jail time.
Requirements under FDA 21 CFR Part 11
  • Protection of records to enable their accurate and ready retrieval throughout the records retention period
  • Time stamped audit trails of documents must be maintained
  • Document approval processes must be streamlined with electronic signature
  • Non-compliance can lead to various penalties like warning letters, fines, product recalls, injunctions, & even criminal prosecution, potentially impacting a company's reputation & ability to maintain regulatory approval.
Requirements under FINRA
  • There must be written and enforceable retention policies
  • There must be a searchable index of stored data
  • Data must be readily retrievable and viewable
  • A backup of data must be stored off-site to prevent data loss
  • Sanctions for wrongdoing include fines, suspensions, and, in cases of serious misconduct, bars from FINRA membership.

 

The avoidance approach is far more costly in the end

Existing attitudes towards compliance or the "avoidance approach" are problematic as the cost of non-compliance is nearly three times higher than the cost of compliance through implementing governance and compliance frameworks like LuitBiz DMS.

The average cost of non-compliance has risen more than 45% in 10 years and is about $14.82 million while the average cost of ensuring compliance is around $5.47 million.

Keeping all these requirements in mind, LuitBiz DMS is best suited for companies in USA because LuitBiz DMS offers:

 

Mobile Friendly

The number of smartphone users in USA was 396.0 million in early 2024, with this figure equivalent to 116.2 percent of the total population. LuitBiz DMS is completely responsive and can be accessed via any mobile device connected to the Internet making it a very practical document management system for the US market.

Easy to learn & get started

Every screen of LuitBiz DMS has audio and video guides that helps users get started with the system within minutes of signing up. This is very practical for US companies who can save a lot of training time of their employees.

Automatic OCR for scanned documents

Most US companies have a sizeable amount of paper documents that need to be digitized and stored in a document management system for easy retrieval. The automatic OCR feature of LuitBiz DMS indxes your scanned documents without having to upload 2 copies - one image and the other OCR copy of each document. You only need to upload your scanned image in LuitBiz DMS!

Automatic version control

In USA, 19.8 % of business time – the equivalent of one day per working week is spent by knowledge workers looking for the right document. The built-in version control system of LuitBiz DMS helps you maintain complete historical records of all the different versions of the documents with complete document usage history

Easy to configure workflow for document approvals & Retention Periods

The easy-to-configure workflow feature of LuitBiz DMS helps automate approval processes without any manual intervention significantly reducing document turnaround time. Additionally, LuitBiz DMS allows users to configure document retention periods for statutory compliances.

Voice Approval With Mobile Devices

The Voice-to-text feature of mobile browsers is very useful for approvers who can approve documents while on the move via their mobile devices without even having to type their approval comments

Easy search & document knowledge

Professionals in USA spend 49% of their time searching for documents and their related information while 33% struggle with the document versioning. LuitBiz DMS allows you to store and search information not included in the body of the document. This saves a lot of time as already researched and collected information do not get lost and can be retrieved immediately

Document Library

LuitBiz DMS Enterprise comes with various template documents that are required for Income Tax, ISO and other compliances. This helps users in having the correct document template for ensuring various compliances

File Format Independent

All document formats can be stored in LuitBiz DMS (barring some executable file formats)

Multiple Location Support

LuitBiz DMS supports multiple business locations. There is no limit on the number of business locations that can be added to LuitBiz DMS

"View Users" Module

The "View Users" module of LuitBiz DMS allows secured sharing of documents with those users who just need to view documents and not perform any operations on them.

Customization

LuitBiz DMS can be customized to meet your company's document management requirements. This ensures that you need not change the way you work by switching to LuitBiz DMS - rather the system can be customized to suit your processes

 

LuitBiz DMS helps you free up your knowledge worker's time spent in chasing trails of paper documents and increases their productivity by around 50%!

 

 

 

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