The periodic destruction of old records and the safe retention of important documents are key to the security of your business.
Record Retention
The age-old dilemma of record retention requirements hasn't gotten any easier, even with the advent of electronic storage possibilities. Even if you religiously keep as many of your business records as possible on your computer and diligently back those records up regularly, you'll still need to retain a great deal of hard copy records for varying periods of time.
The secret to minimizing the sheer bulk of this necessary evil is to know when it's safe to throw stuff out. There is no single statute of limitations for the many categories of records a business needs to hang on to for awhile. The federal and state governments don't always agree, and the rules seem to change from year to year. Requirements also vary widely depending on what specific industry you're in. So much for adopting a scientific remedy.
The art of effective record retention boils down to two standards -- reason and risk. Some business owners fear risking adverse consequences and hang on to everything forever, an unreasonable behavior resulting in landfills such as yours. Others trash everything early and often, an unreasonably risky path to neatness.
One good source of retention guidelines is from the Association of Fraud Examiners (ACFE). Remember that these are just guidelines. Apply them reasonably to minimize the risks in your individual circumstances.
Document Destruction
The flip side of a good retention policy is a good destruction policy. A good alternative for a small business might be a document shredding firm that handles your shredding chores on site at your place of business where you can personally see the destruction process of each piece of paper and/or electronic storage media.
Check out the ARMA trade association and the National Association for Information Destruction (NAID) for information on this growing industry. The secure destruction of important records is a major step in protecting you business and its customers from potential fraud.
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Did You Know?
IM (Instant Messaging) applications enable instant communication. However, IM is not a secure method of communicating confidential information, and it leaves an electronic data trail on the computers and backup storage systems involved.
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