Widespread publicity about shredding of sensitive business records has brought new attention to the question of document management. Despite questionable reasons for some activities, a document destruction program is a necessity for most businesses. Otherwise they would be buried in unneeded data.

A good record management policy strives to reduce paper and electronic data while meeting legal requirements. There are several key issues to consider.

What records to keep

How long to keep documents

How to store records

What documents to get rid of

How to dispose of records

The answers depend on what information the record contains.

1. Are there any legal requirements to retain the information? Check federal, state, and local requirements to meet regulations in such areas as wages and hours, health and safety, or handling of hazardous materials.

2. What purposes could the record serve? Possibilities include evidence in an investigation or litigation, support for a tax deduction or balance sheet item, or an explanation for a business decision.

3. What consequences might result from not having the document available? If the information is relevant to a pending legal action, destruction of the document could be interpreted as an obstruction of justice.

4. Are other reliable versions of the information available? Data available online, in a public database, or central company files may not need to be kept elsewhere.

In assessing legal requirements, you may need to examine state requirements other than the ones in your home state, since a company might be sued someplace else. Legal advice helps to ensure your document management policy conforms to statutes of limitations.

In addition to legal requirements, you need to consider the useful life of the record in ordinary business operations. Some kinds of documents – for example, deeds and titles – should probably be retained permanently. Other kinds of information, such as employee travel records or routing sheets, may not be needed longer than a year.