‘Tis the Season to Clean Out Your Files & Records

Tips for doing that dreaded job

For Immediate Release   -   December 01, 2009

(New Bern, NC) Although the end of a year signals another holiday season, for many businesses it marks the time of year to do the often dreaded job of cleaning out and organizing files and records.  And with the way business files seem to grow every day, the job can seem overwhelming.

“Business files typically growing at a rate of 25 percent a year, according to local records management expert, Gail Bisbee, President/CEO of Confidential Records Management, Inc. (CRMI).  “Because there’s so much to do and because people don’t always know what to keep or toss, they avoid the project altogether. 

But ignoring the challenge can not only lead to trouble with certain record laws, it can also put you or your business in danger of falling victim to identity theft.  “Identity theft is more prevalent than many people think,” said Bisbee.  “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, what should stay, what should go and what should you do with all of it?  Here are a few tips from Bisbee:

• What to keep: This depends in part upon your individual situation.   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.  Consult your legal and accounting staff to determine exactly what should be kept for your situation. 


• Where to keep your records:  This is a very important topic.  Sure, you can store everything on site in file boxes, but what happens if a flood or fire occurs?  How secure is the room where your records are stored?  Off-site, confidential storage and records management is something every business needs to investigate.  Even individuals should consider off-site, secure storage of essential records whether that’s a safe deposit box or at an attorney’s office.

‘Tis the Season to Clean out Your Files & Records

• How long to keep your 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.  Consult a financial advisor or professional records management center before you toss anything.  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. 


• What to do with what you’re tossing:  From a legal perspective, businesses need to ensure confidential destruction of records. But destruction goes beyond a legal issue; it’s also an issue of protecting yourself or your business from identity theft.  Thieves often comb through garbage for information and have even been known to tape together single shred documents.  For small volumes of information, a high end shredder may be the answer.   For most businesses however, you’ll need the services of a firm that ensures confidential destruction.


• Managing what you keep:  Content management is critical and that generally means keeping and organizing electronic records.  Doing a year-end purge of records may feel good, but that feeling will quickly evaporate when you go to search for something and can’t find it.   Get advice on what kind of system will work best for you.

“If you tend to procrastinate about purging and managing your files, make this your New Year’s resolution so in future years, getting organized won’t take quite as long,” said Bisbee.  “Plus, the best part about properly managing your records is that you’ll sleep a lot better knowing that you’re in compliance and your confidential information is protected.”