Document management is sometimes a tricky business. The amount of documentation that comes from running a business can be overwhelming, particularly in terms of what you are responsible for keeping and what you are obligated to destroy. Privacy laws, both in the US and abroad, are not something you can ignore. Governments are becoming increasingly aware of the opportunity for the misuse of personal and business information. That’s why they have put the burden on businesses to protect the documents and the information they contain for those who have provided that information. This means that when a large retailer has a massive data breach that results in exposure of financial and personal information, the merchants are the one left holding the bill and often a hefty fine to boot.
As it relates to healthcare, the Health Insurance Portability and Accountability Act (or HIPAA) states that any business that is responsible for keeping any medical records or transferring medical information must protect the privacy of the individuals who the records document. Failure to protect that information can have serious legal consequences, so proper records management is critical. Here is a quick break down of the best practices for document disposal and retention.
Document Retention
Document retention is important for businesses to maintain accurate records on everything from project documentation, to human resources, to financial information. Having access to information when and where you need it can mean the difference between a successful bid for a new project or the loss of a lawsuit. Audits, for example, can lead to expensive fines without the right supporting documentation on hand. In general, the IRS recommends retaining documents for 3 years to avoid supporting documents to be missing or outdated and burdensome.
That amount of paper work can quickly add up over time, particularly for businesses. Hard copies require special handling, storage, and security. Electronic files, while they take up less physical space and therefore cost less to store, are more easily discovered for hackers without physical access to the material. Therefore, maintaining your documentation requires thoughtful storage, and prioritization of what needs to be kept.
Your organization should not keep personally identifiable information any longer than needed, because in the event of a security breach (physical or digital), you are liable.
Document Disposal
As mentioned above, personal information is increasingly vulnerable. As such, if you still have documents (in any format) that are worthless to your operations, it can add to your legal risk should you be involved in a breach. Document disposal solutions such as shredding, recycling, and incineration need to be done right in order to be done correctly. This is true for digital file disposal as well. What you might think you have deleted off of a hard drive might still be discoverable given the right software programs. That’s why to ensure that you are complying with all necessary legal requirements when it comes to records disposal, working with a professional can make a world of difference.
Are you confident you are holding on to the right documents and disposing of your old ones correctly? It’s worthwhile to connect with a document management expert like the Happy Faces team to make sure you’re on track for 2017.
For more advice on how to properly manage your business documentation, consider reaching out to a consultant at Happy Faces Records Management today.
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