be sure to set expiration dates.
by roman h. kepczyk
managing digital files is in many ways similar to managing paper files in that the firm must have standards for who can
- create a document,
- add to or edit a document,
- file it and eventually
- purge the file.
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unfortunately, as digital files are on the network and out of sight, many firms are not really aware of what files are stored, the most current versions and whether or not they should be deleted.
as firms transition to the “less-paper” environment, it is recommended that they implement a digital document retention policy and make users accountable for adhering to this policy. microsoft windows explorer is one of the weakest and least reliable document retention solutions, as virtually anyone on the network can create, edit, overwrite or even delete any document without recourse. firms won’t know a file has been damaged or destroyed until the point at which they can’t find it or try to load it, which can be days, weeks or even years after the change, and obviously too late. on the flip side, not having good naming conventions and directory structures can result in multiple versions of the same document leading to confusion and errors as to which document should be used, further wasting professional time.
according to the cpafma 2017 survey, 53 percent of firms had an electronic document destruction procedure.
on the flip side, not having good naming conventions and directory structures can result in multiple versions of the same document, leading to confusion and errors as to which document should be used, further wasting professional time.the solution to this is developing a digital document retention policy and training personnel on adhering to firm standards. ideally, firms will use a dedicated document management system that has an integrated or forced retention policy. this means that based on the document’s profile, it would be flagged for deletion at its expiration date. the firm would have the option to keep or delete the file,
the solution to this is developing a digital document retention policy and training personnel on adhering to firm standards. ideally, firms will use a dedicated document management system that has an integrated or forced retention policy. this means that based on the document’s profile, it would be flagged for deletion at its expiration date. the firm would have the option to keep or delete the file, which is much better than the current situation where someone would have to access and evaluate every file to determine what should be done with it.
recommended actions:
- update firm document retention policy to include electronic documents and remind all personnel of firm retention policies.
- evaluate firm’s document retention cycle and promote accountability for cleaning out obsolete files.
2 responses to “preventing document retention headaches”
roman kepczyk
hey patti: i’m guessing your legal council would recommend they be the same and that the firm have a process to make sure it is adhered to, which usually means a big, time-consuming clean up. the cpa firm management association (cpafma.org) has a retention guide you can download which was created in conjunction with camico, as well as you can inquire other members (q&answers) for their templates. hope this helps! bye-roman
patti tokar canton
roman kepzyck, do you recommend using the same document retention guidelines for electronic files as for paper files. for example, a paper tax return might be shredded after 7 years, so the same return as an electronic file would be destroyed after 7 years? do you have a resource for standard guidelines for a cpa firm retaining/destroying electronic files? it seemed easier to have and follow guidelines when it was all paper, although i can’t quite say why. thanks for any guidance!