5 easy steps to build a document retention policy

Businesses are great paper accumulators. Much like the dedicated junk drawer at home, file rooms are loaded with paper hoarded over time. As your business grows, the amount of paper you have multiples then multiplies again until your file cabinets are bursting at the seams. 

Purging your file room of outdated documents is not an easy or fun task, but if you don’t start now, the paper problem will only get more difficult to wrangle. To lasso the bucking bronco, you’ll need to start with some ground rules in the form of a document retention policy. 

Here are the steps to build a document retention policy:

1. Assign a document retention process owner. This lucky person will be responsible for the dirty work of researching the retention policy for each of your record collections and getting buy-in from the team. This will be the owner of the process going forward to ensure all requirements are met.

2. Inventory your files. Take stock of ALL the documents in your possession in onsite and offsite storage. Determine how long they can legally be kept and their useful life. Once the rules are in place, bring in champions from each department that handles a lot of documents - human resources, accounting, sales, and operations. Document how they currently store paper, how they keep it secure, and how they dispose of it. Get their input to see how they could improve their current record-keeping processes.

3. Develop the official corporate records policy and retention schedule. Your policy doesn’t have to be long, just concise. Each record type needs a documented policy for retention and handling in place. For example, invoices will be stored in a file cabinet or document management system and deleted or shredded after a certain period of years from their creation date. 

4. Document retention policy rollout. Just as important as documenting the policy is policy enforcement. If policies aren’t followed to the letter, you’ll be in the same boat in short order. Distribute the new policy to employees. If you are bringing in a new document management system, users need to be trained on how to properly use it. 

5. Auditing periodically to confirm compliance. You should have a regular cadence of checking to make sure all employees are conforming to the corporate retention schedules and that documents are being disposed of properly. You’ll need to update your policy as laws and your business change. 

Tips to maintaining your document retention policy

Outside of setting up policies and purging outdated documents, developing a comprehensive document management strategy is the key to a successful records management practice for your business. 

Here are few tips to get you headed in the right direction:

• Digitize your documents.

  Scanning your backfile of documents makes organizing your documents a breeze. You can do this yourself with your internal team or outsource to a local scanning company that is an expert in this area. They can help you setup up indexing and naming conventions for each document type to make search and retrieval of documents easy. One key step is to make sure you index the dates for time-sensitive documents so you know when they have reached the end of their useful life. 

• Deploy a document management system. 

  Technology makes life a lot easier when rolling out a retention policy. Document management systems let you automatically apply retention policies to any document type. They also have the functionality to allow you to review documents before deletion. Instead of purging paper manually, your digital collection stays lean and mean without any paper cuts. 

• Outsource your paper-heavy business functions.

  There are providers that you can sub in to take over entire processes like accounts payable and scanning incoming mail. You can stop worrying about the paper buildup and focus on tasks that are core to your business. Look for BPO companies that provide invoice processing solutions and digital mailrooms.

At Revolution Data Systems, we can be your go-to document management company. Need to set up a records retention policy or strategize a full records management program? Check. Want to outsource your backfile scanning? Check. Need document management software to digitally manage your files? Check. Thinking about outsourcing a business process like your mailroom or accounts payable? We have you covered. Reach out for a free consultation so we can help you tackle your paper problems.