Managing the Paper Chase

By Gail Bisbee, President/CEO, Confidential Records Management, Inc.

For Immediate Release   -   November 20, 2009

Take a few minutes to think about your files and records.  Have they overtaken multiple file cabinets or even rooms in your home or business?  Would you be able to find something quickly and easily if needed?  Do you have electronic copies or duplicates of your files in case disaster would strike such as a fire or flood?  Are you holding onto items past their “shelf life?” 

Do these questions make you a little uncomfortable because you really haven’t thought about it?   Don’t worry, your not alone.  This is the perfect time of the year to roll up your sleeves and make a resolution to get a handle on your files and reclaim storage space.

If you’re like most of us, you have been procrastinating about organizing your records because you just simply don’t know how long to keep certain items or you don’t know how to get started.  It’s important for you to understand that poor records management can not only lead to legal trouble, it can also put you or your business in danger of falling victim to identity theft, which is much more prevalent than many people think.  All it takes is the wrong person in the right place getting a few of your records and you could find yourself trying to recover for years to come.

So, before you get started on your new resolution, consider the following:

• What to keep – This really depends upon your individual situation, especially if you’re a business owner. However, consider keeping the following: tax return copies, 401K, IRA and certificates of deposit statements, insurance policies, medical records and receipts, loan records, 1099 and W2 forms.  If you’re a business owner, consult your legal and accounting staff to determine exactly what should be kept for your situation. 


• How long to keep files – Many think seven years is the rule of thumb when it comes to tossing out records; however, this is not true for all documents.  Before you start tossing out too much or too little, consult a financial advisor or professional records management center to determine the length of time to keep specific records.  Remember, never assume it’s better to be safe than sorry because federal law says that during an audit, they can go through all records on hand. 


• Protect yourself –Many businesses believe their files are secure but haven’t taken into account the impact of a disaster like a flood or fire or the wrong person getting their hands on your files.  Files and records should always be backed up.  Scan documents to convert them into electronic files and remember to back up your hard drive.  Make a hard copy of all files, blueprints and photographs.  Lock all files in a fire and waterproof filing cabinet, safe, vault or separate room.  Limit access to the files with password protected computers and locked, limited access filing cabinets.  If you have a large number of files containing confidential information, consider installing security cameras.  If this seems like too much to handle, consider an off-site records management facility which can help secure and manager your records.

If it seems too overwhelming, or you’re unsure of how to proceed, don’t be afraid to talk to a professional firm for advice.  When it comes to saving you time and money, it might be a good step to take, but you’ll never know unless you talk to them.

Develop a plan- Finally, after you’ve gone through your records and decided on a course of action, take time to document your records retention schedule and dates for future destruction so your hard work doesn’t go to waste in the future.  You may find that becoming organized with your documents will take some time initially, but you’ll sleep a lot better knowing that you’ve gained legal compliance and your confidential information is protected.