Maintaining Documentation of Professional and Scientific Work

Dr. Engledorf is a sociologist who owns and operates a private research firm and consulting organization. In the beginning he was able to get by without having to do much paperwork and he has always disliked maintaining proper files for outside inspectors. Now that his business is grown and he is doing contract work for government agencies he still not keeping proper documentation, but he is also not charging any client more than what is specified in the contract. Is this a problem?