Protect Your Business with a Records Retention Policy
In an ever-evolving, technology-centric society, keeping track of data and employee records as a business owner can quickly become a job of its own without a system or security protocol in place. Knowing how a records retention policy can protect your business is imperative to avoid and prevent potential lawsuits as well as legal issues involving customers and/or former employees.
What Is a Record/Document Retention Policy?
A document retention policy typically provides an outline of how a company or business entity will manage records and documents involving proprietary information, trade secrets, and even sensitive employee information. Some of the documents that may be mentioned and managed with a records retention policy include:
• Invoices
• Contracts and agreements
• Operating agreements
• Tax returns
• Purchase agreements and purchase orders
• Bylaws and additional corporate documents and business filings
• Employee details
Additionally, it is possible to protect your business with records retention policies when dealing with social media posts, meeting notes, transcriptions, voicemail, and other business conversations that may be recorded.
Creating a Records Retention Policy for Your Business
Before you can create a working records and/or documents retention policy for your business, you must first define the function of your data and how it is currently organized. Data functions may be segmented and organized into the following categories:
• Legal
• Income generation and sales
• Accounting and finance
• Additional facilities
• Human resources and customer service
• Product management
• Quality control
Implementing a Records Retention Policy
Whether you intend to keep and then release information gathered by employees, during meetings, or even via conferences every 30, 60, or 365 days, it is important to establish how you intend to implement your records retention policy. Set clear boundaries and expectations among all your employees when implementing a new records retention policy. If you are unsure how to do so, turn to a firm that specializes in creating and implementing a records retention policy, such as IRCH.
Understanding the importance of a document or records retention policy is essential if you are a business owner, manager or even an investor involved in the business. The right retention policy can help protect you legally and financially in case of a lawsuit, hacking, or digital theft attempt.
