What is a System of Record?

A system of record is an authoritative data source that helps to organize timely data for your business. By serving as a finance system, your tax management and secure websites can all be stored in the same location.

Throughout the course of this article, we’ll cover the following topics in depth:

  • Defining a system of record
  • Detailing what a human resources system of record looks like
  • Defining a data element for specialized systems
  • Official websites and government organization
  • How to create a retrieval system
  • System of record vs source system
  • How Kennected uses a customer system of record effectively

Read on to learn the answer to the question “What is a system of record?” and how best to structure a financial system for your business needs.

Defining What A System of Record Is

A system of record is an authoritative source system meant to serve as a shared reference point for everyone involved in your business.

Though a system of record is specific only to your business, there are rules and regulations that were put in place by the United States government to protect gov websites.

As an information storage system, your specific system of record will be accessible to your marketing team, sales team, operations, and the entire C suite.

According to the federal register and privacy act, you’ll need to ensure that sensitive information is protected and noted in the records notices.

Most systems of record contain different systems for various departments and relevant information.

Ensure that your system of record is safely connected to your technology and that everyone has access to its many functions at any particular time.


Human Resources System for Employee Records

Most organizations utilize an HR system of record within their larger database.

What is an HR system of record used for?

Like other systems, an HR system of record can be used to house specific and sensitive employee information and data.

These systems can house start date, end date, specific records, and even the tasks of these employees.

Having reports and specific data attached to each employee housed in a system of record is a great way to stay organized and keep your data protected.

What Is a Data Element in a System of Record?

A data element is a specific unit that has a unique meaning and designated subcategories.

Examples of data elements include race, gender, and geographical location.

You can use these data elements to sort customers into your system of record, or maintain accurate company statistics.

When creating these data elements, be sure to think about organization and the way you might want to share sensitive information if needed.

Data elements will divide your system of record into more categories, so be sure that they are both well labeled and easy to locate.

Official Government Organization

While a system of record can be beneficial for storing your specific business data, it is also necessary for every business in the US.

The government’s privacy act requires that all of your accounting, agency, productivity, and software information is stored within your system of record that is specific to your business.

This ensures that if your business ever needs to be examined for any reason, there is a complete database filled with all of the information needed.

While you need to include details of your services and transactions, it is also a good idea to include more articles and other pieces of your site within your system of record.

Think of it this way: your system of record is a glimpse into your business as a whole.

Filling this database with all aspects of your business, including marketing efforts, is always a good idea.

Same Data Everywhere

As previously mentioned, a system of record is a place to store your business data from all of your departments.

While you need to have a system in place to categorize specific facets of data, the main benefit of your system of record is that you will have the same data that can be accessed anywhere and everywhere.

With this control, you have the ability to access any items you need at any time.

You will also need to set up a protection system for your system of record.

With this protective layer in place, employees within your business will have access to your data, but users that happen upon your system accidentally won’t be able to view your systems.

What is a System of Record vs Source of Truth?

A system of record is a categorized system where your company data can reside.

A source of truth is the practice of aggregating all of the data from within your system of records into one single location.

In general, a source of truth will deal primarily with company data like analytics, customer engagement, and other customer data that deals with the efficacy of your selling strategy.

The best way to differentiate these two items is to consider them as separate entities.

Your business can have a system of record without a source of truth, but you cannot have a source of truth without a system of record.

With this example in mind, remember that a source of truth comes directly from your system of record.


How Kennected Uses an Operational System For Success

Here at Kennected, we have modeled our own systems after other companies we admire and respect in the SaaS space.

It is critical to have a cohesive storage method for all of your business data, and a well organized system of record helps our business enormously.

We have categories for each service, helping us stay organized and keeping our data secure.

Take care in creating your system of record and be sure to keep all of your sensitive information protected. 

Hop-On The Kennected Train

According to HubSpot, 61% of companies name their top marketing challenge is generating traffic and leads.

If you’re part of that 61%, keep reading because what you’re about to discover could be a game-changer for you and your business (like it has for thousands of people before you).

So many business owners & sales professionals that come to us are struggling to get ahead because they’re stuck relying on referrals, lead lists, or manual prospecting.

This is taking up too much of their time and isn’t creating the consistent income they’re looking for to fund the lifestyle they want for themselves and their families.

Four years ago, the founders of Kennected had the same struggles. They found that lead generation was way too complicated, expensive, and time-consuming, knowing there had to be a better way.

So they developed a new way of getting qualified leads that turn into new customers on the #1 platform for B2B lead generation… LinkedIn.

In the four years since we developed this lead gen strategy, we’ve earned a spot on the Inc. 5,000 list of Fastest Growing Companies in America.

And more importantly, it helped over 17,000 businesses get new leads and sales for THEIR businesses.

Want to see how it works?

Click here to see how you can use Kennected to fill your sales pipeline with qualified leads in less than 10 minutes per day.

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