Document Retention Guide
Holding onto important documents is a common practice known as document retention. Our retention guide will outline the benefits of keeping records, when you should keep documents, and when you should get rid of them.
Why Retain Documents?
There are many reasons to retain documents, but for many businesses, retention is part of following the law. Though it can vary by state and industry, legislation requires businesses to retain specific documents for a certain period of time. In addition to abiding by the law, businesses should also pay attention to the best practices for retaining documents, and have a document retention policy that they stick to.
Best practices state that most important documents should be retained for at least 7 years before being destroyed. This helps protect a business from legal consequences, such as if the records were requested for auditing purposes or subpoenaed by the court system. After 7 years, most records should be destroyed in a secure manner. That’s because after this period of time, these documents become irrelevant or are even too dangerous to keep around. Also, if there are a lot of files, they can quickly overwhelm office storage space.
It’s become common practice for most entities to retain documents for 7 years. Payroll records are an example of records that should be kept that long, typically because courts can either subpoena those records, or subpoena testimony from employees.
This 7-year rule is not applicable in every circumstance, however. There are many types of documents that should be retained permanently, while others can be destroyed within a year.
For an idea of which types of documents should be retained as well as how long they should be kept, we have compiled a list of retention policy suggestions. These lists are based on federal laws, Ohio state laws, and best practices for standard document retention.
Important Note
These lists are only a general guide. Consult with a CPA to ensure complete legal compliance.
- Corporate Records
- Financial Records
- Business Taxes Records
- Insurance Records
- Personnel Records
- Management Plans and Procedures
- Contracts
- Donor Records
How to Build a Retention Schedule
While these guides are useful, it’s important for every organization to decide the specific retention policy they will follow based on both state and federal law, as well as best practices for record retention.
Why build a retention schedule? It is best to always set clear policies when it comes to handling important company information, and document retention is no exception. To avoid liability and risk that can come from vague rules surrounding what records to dispose of when, a document retention schedule is a great resource for employees.
The Ohio Department of Administrative Services has developed a general list of recommended retention schedules for government agencies, but any commercial business or education department will find the information applicable to them as well. Want more information about Ohio document retention? Contact your Proshred® Columbus team.
What People Are Saying About Proshred®
For $20, Proshred took my 13 gallon bag of paper and shredded it before me. Service was to the point and brief. Note the last... read moreFor $20, Proshred took my 13 gallon bag of paper and shredded it before me. Service was to the point and brief. Note the last shredding job is ar 3pm [not 4pm as stated on the Google Maps]. read less
C. Ojar8/26/2022Excellent service.
Kelly Sullivan4/21/2022Proshred was professional from getting the quote to the pick-up of the shredding, Ricardo was very friendly and accommodating. Very Happy would recommend this company.
A Forshee12/03/2021Jose & Ricardo were absolutely fantastic! They were so professional, timely, efficient and kind during delivery of our shred bin. I would recommend Proshred to... read moreJose & Ricardo were absolutely fantastic! They were so professional, timely, efficient and kind during delivery of our shred bin. I would recommend Proshred to anyone based off our phenomenal experience with these two gentlemen. read less
John Ammatuna12/03/2021We used Proshred to clean up a ton of old documents at our retail location in Hartsdale, NY. The team was extremely responsive to every... read moreWe used Proshred to clean up a ton of old documents at our retail location in Hartsdale, NY. The team was extremely responsive to every email to leading up to and following the appointment. The pair that came onsite to do the shredding were enthusiastic and efficient. It was a true pleasure to hire the team at Proshred for our project.We were able to watch the shredding from a camera on the truck to ensure our confidential documents were completely destroyed.I highly recommend Proshred for their excellent work ethic. read less
Laura Violet6/30/2021Great service at great rates. They were very accommodating to even small jobs and very convenient from all major highways for a drop off.... read moreGreat service at great rates. They were very accommodating to even small jobs and very convenient from all major highways for a drop off. Steve is very professional and the drop to payment takes only minutes. They also offer at home service, which is great for larger jobs. read less
RMM Finance Dept.12/31/2020Because of the virus my husband was cleaning out his home office, as a realtor he had documents more than 10 years old. We... read moreBecause of the virus my husband was cleaning out his home office, as a realtor he had documents more than 10 years old. We didn’t know where to go, and found Pro Shed online. We set up an appointment for drop-off with Steve. He was very accomodating, professional and courteous. When he noticed my husband’s military hat, he went out of his way to assist while still being socially distant. The documents were extremely sensitive due to the nature of my husband’s business. We now have a much more organized office, we would definitely recommend Pro Shred and Steve to other businesses,friends, and relatives! Thank you Steve! read less
Marietta Sanzo12/31/2020