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1. I think it's an easy answer: inform mgmt of the potential error of their ways. If they don't do anything about it because they're not the sort to admit any mistakes, that's their problem.
If you're worried about more work with the same pay, raise that issue at the same time if they look like they want to go forward with having you fix the entire system alone. Tell them you've found a possible problem, but also think you have a potential fix (hiring a new employee or spreading the added work out to all employees) at the same time.
Were I to own a company and someone had an idea how I could make an additional $20K monthly through correcting paperwork inefficiencies, I would be interested in knowing how.
2. Are you an employee or a consultant? Not that that would alter my decision-making above, but it would clarify some of the issues/ramifications others have mentioned.
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1987 Venetian Blue (looks like grey) 930 Coupe
1990 Black 964 C2 Targa
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