Document Retention Planning

Every business needs a policy for records management and storage, storing critical business information offsite has moved up on the priority list for many. When forming a records management strategy, considerations should include what needs to be stored and for how long, where it can be stored and if it makes sense to hire an outside company to help.

"There is a lot of confusion about retention scheduling," says Jim Booth, executive director of the Garner, N.C.-based trade group Professional Records & Information Services Management. Booth recommends small businesses look to their attorney, accountant and trade association for guidance. However each industry will have specific laws and regulations governing their activities and different types of records will have a unique retention requirement.

Below is a suggested retention schedule for consideration and use in forming your own retention schedule:

Accounting		Administrative		Personnel
Accounts payable ledger	P	Audit reports, internal	10	Injury claims	11
Accounts receivable	10	Audit reports, government	P	Settlements	11
Balance sheets	5	Audit work papers, internal	6	Applications	3
Bank deposits	6	Correspondence, accounting	5	Terminations	3
Bank Statements	8	Correspondence, credit	7	Attendance records	6
Bills collectible	7	Correspondence, collection	7	Benefit records	8
Bonds, sales or transfer	15	Correspondence, personal	6	Earnings records	P
Building permits	20	Correspondence, tax	20	Employee contracts	7
Cash receipts	10	Inventory, plant records	P	Garnishments	7
Check records	10	Organized charts	P	Pay checks	P
Customer ledger	P	Research reports	20	Payroll records	P
Financial statements	P	System and Procedure records	P	Pension plan records	P
Trial balance sheets	P	Telephone records	P	Training manuals	P
Corporate		Insurance		Taxation
Annual reports	P	Accident reports	11	Agents Reports	P
Bonds, surety	10	Appraisals	P	Correspondence	20
Capital stock records	P	Claims, automobile	10	Depreciation schedules	3
Contracts, employee	P	Claims, plant	P	Dividend register
Contacts, government	P	Claims, workmen's comp	10	Employee withholding	8
Contracts, vendor	10	Expired policies	7	Exemption status	P
Incorporation records	P	Expired policy, surety	10	Inventory reports	16
Stock holder records	P			Real estate	15
				Social security	P
				Tax bills and statements	P
Legal		Manufacturing		Traffic
Affidavits	10	Bills of material	5	Bills of lading	3
Charters	P	Blueprints	30	Delivery reports	3
Claims and litigation	P	Correspondence, engineering	10	Export declarations	4
Copyrights	P	Drawings, original	P	Freight bills and claims	5
Mortgages	5	Inspection records	5	Leases	6
Patents	P	Inventory records	16	Shipping tickets	6
Trademarks	P	Operating reports	10	Title papers	P
Quality control reports	5			Tonnage summaries	P
Specifications, customer	P	Sales and Marketing		Tracer reports	P
Time and motion studies	P	Claims, loss or damage	5	Vehicle maintenance	4
Tool control	5	Complaints	5
Work Orders	5	Contracts, customers	6
		Discount rates	5
		Guarantees, warrantees	6
		Market research and analysis	P
		Orders filled	8
		Price lists	P

The retention schedules above are based on surveys of U.S. companies. In constructing your own policy consult your state, US and industry regulations of government agencies pertaining to your business.

Retention Planning

Every business has its own requirements, and federal and state regulations enter into the picture. The IRS provides guidelines for holding many records. Your insurance company bank or professional organizations may have their own requirements or suggestions.

There are five main areas to look at when figuring retention requirements:

• Statutory requirements, both local, state and federal
• What might be necessary to defend litigation down the road
• Documents that may be necessary to produce during an audit
• Standard industry practices for your particular business
• And documents that may have historic significance