does everything need to be stored in archive boxes?
DESCRIPTION
Record keeping is a must for any business, but the amount of data builds up over time which will become a headache at some point. Find out which type of documents are worth archiving and how to sort them in this slide. see original article: http://www.theofficesuppliessupermarket.com/articles/do-i-need-to-archive-boxesTRANSCRIPT
Does everything need to be stored in archive boxes?
Many large companies that have been in business for decades will have a dedicated room or office where they store all their records.
These records will have been built up over time to include every in and out of the business including purchase orders, invoices and other bit of paper that includes a transaction that someone thinks they ought to keep.
Keeping records is a good thing, indeed, it’s essential to keep records so that you can accurately produce accounts at the end of the year and pay the relevant taxes.
HMRC insist on it, what they don’t insist on is that your records are stored in massive boxes taking up a huge amount of space.
In fact, many people are under the false belief that all of your records should be in hard copy and stored for six years.
Some companies take this to extremes by having climate-controlled rooms to ensure the paper doesn’t deteriorate due to moisture, bugs or chemical reactions.
No, HMRC simply say that ‘records should be kept’, here’s an extract from their website (http://www.hmrc.gov.uk/record-keeping/#2):
“HMRC recommend you keep all the original documents you receive. This does not mean you need to keep them on paper. Most records can be scanned and kept electronically on a computer or a storage device such as a CD or memory stick.”
Pretty clear advice then. This means there’s absolutely no need to be storing everything in archive boxes which when it’s a big or old company could be costing a lot of money.
ARE THERE TIMES WHEN I SHOULD ARCHIVE THE PHYSICAL DOCUMENTS?
This is obviously down to personal choice, but the best thing to do is to have a policy for these sort of records.
For example, you could categorize documents based on their importance and have maybe three types that you deal with in different ways, such as:
Unimportant
These could be notes, messages, letters etc. that really don’t need to be kept at all.
If it’s correspondence that is in duplicate because you’ve already got electronic copies (or access to them, such as utility bills) then these can be destroyed immediately with no need to keep either an electronic or paper copy for more than a month.
Important – to be archived
Some records need to be kept, but as long as they can be accessed there’s no need to keep then physical copy.
We tend to suggest scanning them immediately and then keeping them for six or twelve months in archive boxes.
Date the boxes and then when the year is up, destroy them securely.
Very important
Sometimes you get records that are extremely important and the original documents are a matter of historical value.
For example, you may have just bought a company and wish to keep all the records that relate to both companies for the future.
It would be a shame to destroy such documents of importance.
These can be kept in archive boxes but assuming the points above have filtered out lots of semi-important documents, this shouldn’t be a problem anymore.
Basically, store documents that are important and need to be accessed easily and make sure all electronic versions are also available for anybody that needs to see them, while remaining secure.
