Summary:
In this article, you’ll learn how to create an effective document retention policy with these six key steps:
- Assign a Process Owner: Designate someone to manage the document retention policy.
- Create an Inventory: Identify and categorize all document types.
- Set a Budget: Determine costs and allocate funds for document management.
- Develop a Policy and Schedule: Establish guidelines for document retention and disposal.
- Communicate the Strategy: Ensure all employees understand and follow the policy.
- Conduct Audits: Regularly review and update the policy for compliance and effectiveness.
Implementing these steps will help you manage your documents efficiently, protect sensitive information, and maintain your business’s reputation.
As your business has grown, the amount of paper lying around has grown, too. More invoices. More employee tax forms. More customer contracts. If not controlled, your documents will multiply and create chaos in your office—bottlenecks that could ultimately threaten the success you’ve worked so hard to achieve. Sensitive customer information will be lost, damaging the trust they have in you. Visas will expire, leaving your organization open to fines. Checks won’t be cashed as soon as they need to be, reducing your cash flow. Invoices will not be paid on time, damaging your credit and your reputation. Overall, the vitality of your business will be threatened.
As a small to mid-sized company, developing a document retention strategy may not be one of the top priorities on your list. But if you can’t manage your documents now, how can it possibly get any easier down the road when your company is bigger, and your paper burden is even larger?
At Docufree, we specialize in end-to-end document management. We help companies like yours reduce the burdens and bottlenecks associated with too much paper, helping reduce costs and increase efficiency along the way.
Below are helpful points from us that can assist you in developing a strategy that will help you keep your business-centric information secure, easy-to-find and compliant.
- Establish a document retention process owner. This person will be accountable for doing research, establishing the chosen policy, and getting everyone on board. This person will also own this process and ensure all timelines are met.
- Create an inventory. Take inventory of the various types of documents in your organization, and determine which documents should be kept and for how long. At this point, begin involving others across your organization. Consider establishing document management champions in each functional area that has a lot of paper (e.g. accounts payable, remittance processing, human resources).
- Determine a budget. For some businesses, good document retention may require some budget dollars, at least on the front end. In order to develop a budget, it’s important to know what you’re spending now, including the hidden costs. How much time are employees spending scanning documents or filing hard copies? How much office space is being used to store boxes of old documents? How much computer and server memory are you adding annually to keep things operating efficiently?
- Develop a corporate records policy and retention schedule. For some documents with little to no business value, you may be able to purge them often. For others, there may be regulatory requirements that require you to keep them for a certain amount of time. The best advice is to contact an attorney or your state records management association for up-to-date guidance on government requirements.
- Communicate your strategy. In order for your strategy to be successful, it’s important that your whole organization buys into it. Distribute your policy to your employees. If you are deploying new technology, it’s important that all users know how to use it. Every employee should be made aware of the set retention schedule and make any changes in order to be prepared. It is also important that up-to-date definitions of your documents are being shared so everyone is on the same page.
- Conduct periodic audits. Confirm your employees are complying with the published corporate records policy. Use the feedback you receive to update your strategy as needed to ensure it remains effective.
Have you begun implementing a document retention strategy in your organization? If it’s not already being prioritized among your team members, it’s time to make some changes. If you need help implementing a strategy for your team, contact us.
