Here are some of the files that your business should avoid shredding.
Businesses don’t need to keep every single document that they have. Eventually, there will come a time when certain documents aren’t necessary anymore, meaning you can dispose of them by having them shredded. Other documents, however, need to be protected, and it’s important to know exactly which documents those are. Here are some of the files that your business should avoid shredding.
Business Receipts and Income Tax Returns
Business tax returns are great to have on hand because they’ll assist you when filing for the upcoming year. They can also be helpful in the event of additional IRS audits. One of the reasons why the IRS might audit a company is because they don’t report income that goes beyond one-fourth of gross income.
Supportive tax files should be kept on hand for a minimum of seven years. It’s always smart to collect and hold onto receipts so that you can properly track and verify all claimed tax deductions.
Information on Employees and Clients
It’s recommended by the IRS that businesses keep employee files for a minimum of four years after an employee has stopped working for the company. Such information to keep includes ID information, name, address, and social security number.
If your business stores personal or financial information on clients, you’ll need to think about how long and securely these files should be held. It’s a requirement by the IRS that individuals can produce records regarding credit claims or income deductions for as long as seven years from the time of return.
Business Property Records
Businesses property records can help you calculate depletion, amortization, and depreciation deductions, while also letting you assess the loss or gain you have on the property. It’s important to keep files that are considered assets to you, like the deed to your property and vehicle titles. These files should be held until your business doesn’t own them anymore.
Have Questions? Micro Records is Here to Help
If you have more questions about document management software, Micro Records is here to help you with all of your needs. We can help your business to transition to a paperless way of life with outstanding e-forms and technology. For more information about how we can help you implement your new document management software, visit us online or give us a call at 877-410-SCAN. For more tips, tricks, and to see what we have been working on, be sure to follow us on Facebook, Twitter, LinkedIn, and YouTube.