One of the most common questions businesses face is how long they should keep different types of documents. Holding on to important records is crucial for compliance and auditing, but keeping documents for too long can become a security risk. At BestShred, we want to help you strike the right balance by understanding document retention guidelines and ensuring sensitive information is securely disposed of when it’s no longer needed. As with all important business decisions, however, please consult with your attorney, tax advisor or other professionals for your specific situation.
General Document Retention Recommendations
Different documents require different retention periods, depending on their purpose and the regulations governing your industry. Here are some general guidelines for common types of business documents:
- Tax Records: Generally, the IRS recommends keeping tax documents for seven years. This allows for any potential audits or amendments that may be needed during that time.
- Employee Records: Keep employee personnel files for at least seven years after termination. Records related to payroll, benefits, and workplace safety should also be retained for a specific number of years, depending on your state’s regulations.
- Financial Records: Bank statements, financial reports, and invoices should be kept for three to seven years. This ensures you have the necessary documentation for audits, accounting, and any financial disputes that may arise.
- Contracts and Agreements: Store contracts, leases, and agreements for the duration of the contract plus an additional seven years. This helps provide a buffer in case any issues or disputes arise after the agreement ends.
These are just general recommendations. Your business might have specific retention requirements based on industry regulations like HIPAA, GDPR, or FACTA.
Why Proper Retention Matters
Holding onto documents for the correct amount of time is not just about compliance; it’s also about protecting your business from risk. Keeping documents longer than necessary increases the risk of sensitive information falling into the wrong hands. Proper document retention practices help reduce unnecessary clutter and make managing files easier while maintaining compliance with applicable laws.
The Role of Secure Shredding
Once documents reach the end of their retention period, they need to be securely disposed of. Simply throwing documents away or recycling them without shredding can lead to significant risks, including data breaches or identity theft. That’s where BestShred comes in. Our professional shredding services ensure that outdated documents are destroyed beyond recovery, giving you peace of mind that your business’s sensitive information stays protected.
BestShred offers convenient options to help your business stay on top of document disposal, whether through scheduled shred days or on-demand shredding. By incorporating shredding into your document management strategy, you can maintain a clutter-free, compliant office environment that’s safe from potential threats.
Stay Organized and Compliant with BestShred
Document retention can be overwhelming, but with a clear plan and the right partner, it doesn’t have to be. Let BestShred help you keep your business secure and compliant by handling document destruction when it’s time to dispose of old records. With our reliable shredding services, you can stay focused on what matters—growing your business without worrying about information falling into the wrong hands.