Every business maintains extensive records of its operations and payments, which can get quite tedious to keep around. That’s why you should use a retention schedule, as it can help you track how long you need to keep documents around and when you should destroy them. Read on to learn more about what you should know about record retention for your own business.
Legal Requirements
The reason why document storage and tracking are important is that the government legally requires both practices. The government requires you to track and record all sorts of data related to taxes and payroll, among other things, for your business. If you don’t have these records, you may face fines if your business ever goes through an audit.
Different Retention Lengths
Record retention isn’t the same for every type of document your business will keep. You only need some for a few years, like employment records, while others you’ll need for the entire lifespan of your business. That’s why a retention schedule can be so helpful, as it assists you in tracking and organizing documents while knowing their retention requirements.
Best Business Practices
There are a lot of things to consider when storing and archiving any business documents, which is why it’s good to follow best practices. Organize your records carefully, both for access and to easily identify retention schedules. Try digitizing this information so that you can quickly check any document. Additionally, holding onto employee records can be a nice way to help past employees who need you as a reference for potential background checks, though it’s not legally required after three years.
Storage Methods
The last thing you should know about record retention is that there are many methods that can help your business store and track your documents. Some popular methods for storing physical records include high-density movable storage solutions that you can fit in your brick-and-mortar location. Many larger companies use third-party companies that specialize in storing records, keeping your space free and protecting your documents.
These are the main points of record retention that’ll help you navigate legal requirements and avoid fines for improper record keeping. Following your record retention schedule is the best thing you can do as a company, as you can clear up your storage and protect your business from fines. Ensure you have a good schedule you can follow and use it often.
