A document or records retention policy provides a formalized process to manage your organization’s physical and electronic records. A policy also ensures your organization complies with state and federal document retention and destruction laws. Should you face a lawsuit or investigation, you can easily reference relevant records to help support your case. Your records retention policy also improves efficiencies, making it easier to locate and share documents as needed. Here we provide a comprehensive overview of document retention policy best practices to protect your data and improve compliance.
Records retention policies and schedules are influenced by document type and record retention laws by state. Document retention guidelines use storage periods based on one, three or seven years with a category of records that must be retained “forever.” We provide state record-keeping agency links below that can advise on the specifics for your industry. However, to get you started, we’ve categorized document types and listed them based on the years of retention required:
Paper documents tend to reach unmanageable proportions overnight. If it seems your business is overrun with paper and manual processes that slow your team down, now is the time to act. Document conversion relieves your team of outdated manual processes and establishes new protocols that avoid document bottlenecks. Also known as digitization, document conversion creates digital files of your paper records that are searchable using a document management system, or in some cases a simple Windows folder tree.
However, it is not always a straightforward process and often calls for professional assistance. Some possible reasons you may want to leave it to the professionals include:
This guide provides a clear and comprehensive overview of the document conversion process, how it digitizes your paper documents and the benefits to your business.
What are document conversion services?
Document conversion services organize, scan, save, and tag your paper documents so they can be archived or stored on a cloud-based, secure storage system or in a system you have on the premises. The process includes detailed document tagging that creates searchable digital files, improving efficiencies, facilitating collaboration, eliminating time-consuming manual filing and retrieval tasks. With professional-grade equipment and expertise, document conversion services adhere to strict industry protocols, ensuring your documents remain secure. The result is a completely digitized, fully backed-up database with your records accessible in seconds.
What are the immediate benefits of document conversion services?
Document conversion systems provide a more efficient way to organize, store, and retrieve documents. The immediate benefits include:
What are the long-term benefits?
Once your files are digitized, you will continue to see longer-term benefits, including:
How do document conversion services work?
The document conversion process uses the following steps:
Step 1: Document Pickup
Document pickup generally includes picking up boxes that have been packed and labeled by the customer, and then creating a manifest of the boxes for tracking and control. Either your team or your service company can complete this step, to ensure:
It’s also important to confirm with the conversion company how you or your team will be able to access documents when needed, while they are in their possession.
Step 2: The Document Prep and Scanning Process
Once your documents are delivered to the conversion center, the scanning company will go through the documents to ensure they are ready to scan. This includes smoothing out folds and creases, removing staples and paper clips, and identifying damage that might pose a challenge. The scanning technicians follow industry protocols.
Documents are scanned on high-speed scanning equipment and produce high-resolution 300 dpi image files, which are saved in the format you require. The scanning service can recommend the best format to allow easy integration with your document management system.
Step 3: Document Indexing
This is where the service really proves its worth. Once your documents are digitized, they are ready to be indexed. The indexing is based on the system you require, with specific naming protocols and categories. Indexing makes it easy to retrieve documents with a simple search. You can save documents based on several criteria, enabling cross-referencing based on the date, client name, project name, invoice number, etc. You can make things easier by mimicking your current paper file system or take this opportunity to create a more logical, easier-to-use indexing system. Indexing uses “metadata” and keywords that associate names and words with each file based on logical descriptions of the file’s content.
Step 4: Quality Control
A critical step in the process is making sure the new digital files accurately reflect the original documents. Most scanning service companies sample a small percentage of files for quality control, others inspect EVERY image in EVERY file to make sure the document conversion process is completely accurate.
Step 5: Document Disposal
Document disposal is based on industry protocols and confidentiality regulations. In some cases, the documents can be shredded without any special requirements, while other documents might require a paper backup for an allotted time. Many industries have data privacy protection laws, while others require a certificate to prove the document was shredded. Document conversion services adhere to all retention and destruction requirements to ensure you remain 100% compliant.
Should I consult with an expert?
Yes, and the larger the job, the more important it is to consult with an expert. A professional conversion service ensures your project is completely organized. They create a scanning plan and ensure you remain compliant with all industry standards and best practices regarding data storage and privacy laws, both with the currently held documents, but also for documents as they are created in the future. Although you might consider investing in scanning equipment to complete the project in-house, it is a highly time-consuming process. Standard equipment is not designed to handle large volumes.
Document conversion services use high speed scanners and sophisticated software that can convert large quantities of documents very quickly. As a result, you can be up and running with your new system within a few days or weeks, depending on the scope of the project.
There is also the question of quality – conversion services hire technicians who understand how to prepare documents, scan them, and ensure the images are clear and legible. In-house scans might be difficult to read, making the entire process a complete waste of time for your team.
When you are considering digitization of your paper records, MEDI is your best resource. We will discuss your project, offer cost-effective solutions, and develop a customized plan. We can also implement a data management system to eliminate manual processes and streamline the document retrieval process. Reach out to our team today.
Records for tax returns are saved based on periods of limitations. If you file a claim for a credit or refund after your return, you should keep records based on the later date, either three years from the date you filed your original return or two years from the date you paid the tax.
Employment tax records are maintained for at least four years from the date the taxes were either due or paid, whichever is later. If you have income that is more than 25% of the gross income you reported on your return but that you did not report, records should be kept for six years. If you do not file a return for any given year, do not destroy those records until you file your return.
Document retention is based on the type of document. There are several different governing bodies that dictate retention practices, including the following agencies:
However, there are also state and local document retention provisions to consider, as well as industry-specific regulations that might apply to your organization.
Your Record Retention Policy should adhere to state, local, and industry standards. However, there are document retention best practices every organization should adopt to create a comprehensive policy, including:
Because there are so many governing bodies involved in record retention standards, it is important to research all document retention laws that apply specifically to your organization and industry. You want to ensure you include all legal obligations in your record retention policy.
Your own needs must also be addressed in your record retention policy. You want your policy to improve business-critical processes so you can leverage efficiencies related to document storage requirements. This is your opportunity to invest in a data management system that empowers your team to improve collaboration, customer service, protection of your intellectual property, and more.
Combine business needs with legal obligations to create data-specific policies. This ensures all stakeholders understand the length of time data is stored based on regulatory, legal, and corporate rules. This also avoids creating a mindset that all data must be retained forever. Saving unnecessary documents increases the risk of data loss and has a more significant impact in the case of data breaches.
Backing up data is critical to record retention. It ensures you remain compliant while reducing the risk of data loss. Having a clear procedure for data backup ensures you maintain records for all data, so you experience limited disruption following a catastrophic event.
To help create your records retention policy it is best to start by reviewing your state records retention policies and schedules. You can find links to record retention laws and best practices by state below:
Alabama
Alabama Document Retention Schedules
Alaska
Alaska Document Retention Schedules
Alaska Employer Recordkeeping Laws
Arizona
Arizona Document Retention Schedules
Arizona Employer Recordkeeping Laws
Arkansas
Arkansas Department of Finance and Administration
Arkansas Employer Recordkeeping Laws
California
California Document Retention Schedules
Colorado
Colorado Document Retention Schedules
Connecticut
Connecticut Document Retention Schedules
Connecticut Employer Recordkeeping Laws
Delaware
Delaware Document Retention Schedules
Florida
Florida Document Retention Schedules
Florida Employer Recordkeeping Laws
Georgia
Georgia Document Retention Schedules
Georgia Employer Recordkeeping Laws
Hawaii
Hawaii Document Retention Schedules
Hawaii Employer Recordkeeping Laws
Idaho
Idaho Document Retention Schedules
Idaho Employer Recordkeeping Laws
Illinois
Illinois Document Retention Schedules
Indiana
Indiana Document Retention Schedules
Iowa
Iowa Document Retention Schedules
Iowa Employer Recordkeeping Laws
Kansas
Kansas Document Retention Schedules
Kansas Employer Recordkeeping Laws
Kentucky
Kentucky Employer Recordkeeping Laws
Louisiana
Louisiana Document Retention Schedules
Louisiana Employer Recordkeeping Laws
Maine
Maine Document Retention Schedules
Maine Employer Recordkeeping Laws
Maryland
Maryland Document Retention Schedules
Maryland Employer Recordkeeping Laws
Massachusetts
Massachusetts Employer Recordkeeping Laws
Michigan
Michigan Document Retention Schedules
Michigan Employer Recordkeeping Laws
Minnesota
Minnesota Document Retention Schedules
Mississippi
Mississippi Document Retention Schedules
Mississippi Employer Recordkeeping Laws
Missouri
Missouri Office of Records Management
Missouri Document Retention Schedules
Montana
Montana Records and Information Management Division
Montana Document Retention Schedules
Montana Employer Recordkeeping Laws
Nebraska
Nebraska Document Retention Schedules
Nebraska Employer Recordkeeping Laws
Nevada
Nevada Document Retention Schedules
Nevada Employer Recordkeeping Laws
New Hampshire
New Hampshire Document Retention Schedules
New Jersey
New Jersey State Records Committee
New Jersey Document Retention Schedules
New Mexico
New Mexico Commission of Public Records
New Mexico Employer Recordkeeping Laws
New York
New York Document Retention Schedules
New York Employer Recordkeeping Laws
North Carolina
North Carolina Employer Recordkeeping Laws
North Dakota
North Dakota Document Retention Schedules
Ohio
Ohio Department of Administrative Services
Oklahoma
Oklahoma Document Retention Schedules
Oklahoma Employer Recordkeeping Laws
Oregon
Oregon Administrative Rules Database
Oregon Document Retention Schedules
Oregon Employer Recordkeeping Laws
Pennsylvania
Pennsylvania Office of Administration
Pennsylvania Document Retention Schedules
Rhode Island
Rhode Island Document Retention Schedules
Rhode Island Employer Recordkeeping Laws
South Carolina
South Carolina Document Retention Schedules
South Carolina Employer Recordkeeping Laws
South Dakota
South Dakota Bureau of Administration
South Dakota Document Retention Schedules
Tennessee
Tennessee Division of Records Management
Tennessee Employer Recordkeeping Laws
Texas
Texas Document Retention Schedules
Texas Employer Recordkeeping Laws
Utah
Utah Document Retention Schedules
Utah Employer Recordkeeping Laws
Vermont
Vermont Document Retention Schedules
Virginia
Virginia Document Retention Schedules
Washington
Washington Document Retention Schedules
Washington State Employer Recordkeeping Laws
West Virginia
West Virginia Document Retention Schedules
West Virginia Employer Recordkeeping Laws
Wisconsin
Wisconsin General Records Schedule
Wisconsin Employer Recordkeeping Laws
Wyoming
Wyoming Document Retention Schedules
Yes, a document management solutions company will ensure you understand the compliance and retention schedules that apply to your organization. At MEDI, we have been offering document retention, destruction and data management solutions for over 40 years. We can help you develop a comprehensive records retention and destruction policy along with agile data management solutions to improve compliance and company-wide efficiencies. Speak with an expert today!