***Full Disclosure: Visit our "Disclosure Policy and Cookies" for details. Affiliate links appear on this page from Google Adsense, Amazon, Impact affiliate members, and Shareasale affiliate members.****
Small businesses have physical and digital files that need to be retained for a certain length of time. This could be from a few months to forever. It depends on what items are being kept and how much personal data are included in those items. Today, we are talking about how to dispose of physical and digital files that you no longer need.
Table of contents
You may be wondering why I need to dispose of them properly. Well, there are several benefits of doing this the right way. Below are just a few.
Benefits of getting rid of these physical and digital files.
- Minimizing unnecessary storage: You don’t need to keep everything forever. This will free up space on your computers and physically.
- By creating a well-documented process for destroying physical and digital files, you can demonstrate that you are protecting customers, employees, and subcontractors from the breach of their personal information.
- It shows that your company cares about your people and those supporting you.
Remember, these files could be physical or digital. So today, we will discuss the best way to eliminate both.
How to get rid of small business physical paper files
For physical paper files, like payroll, human resources, subcontractor documents, and business financials, the best process is to shred the record with a cross-cut sectional shredder (Affiliate Link).
Paper Shredder, Bonsaii 15-Sheet Office, 40 Mins Heavy Duty Crosscut
Buy Now →(Affiliate Link)
Some shredding companies will come to you with a shredding truck to shred the documents on the premises. Below are some companies I found online.
***Ad***
While we have many physical files, we also have several digital ones that must be appropriately destroyed. Read on to find out what to do with the unwanted digital files.
How to get rid of small business digital files?
These digital files must be destroyed by shredding them and wiping out the hard drives of old computers, printers, copiers, and servers. All these devices may keep an image of the information. Just destroying the device may not work these days. You will not remove it by just deleting it from File Manager on your computer. A better way is to restore the computer to the factory settings and wipe all the content. After you do this, you can revisit the folders and places where your information is and see if everything has been removed.
Some companies also offer services for disposing of and destroying these files and documents. But they may also be at risk. Choose a company that conducts background checks on its employees. They also offer risk indemnification. They track assets during the disposal process. They also make sure they are environmentally responsible in their disposal process.
Below is a company I found online that offers services to help you destroy your digital business files.
Shred-it Media Destruction Service
“But how long do I need to keep my business files?” you may be wondering.
How Long to Keep Business Files (digital and physical)
Below are guidelines on how long to keep business files. The length may be different than personal files.
***Ad***
| Business Files (Digital and Physical) | Years to Keep |
|---|---|
| Employees records | keep for 3 years from the termination |
| Employee earnings records | keep for at least 4 years after termination |
| Records involving unclaimed property, such as an unclaimed paycheck, check state laws | 4 years after termination |
| Timecards | keep for at least 7 years |
| Employment tax records | Keep for 4 years from the date the tax was paid |
| Travel and entertainment records | Keep mileage logs, receipts, and other supporting documents for 4 years |
| Sales tax returns | Visit your state to find out how long to keep these files. Each state has a sales tax department through the Department of Revenue. They detail exactly what you need to do. If your business is in Pennsylvania, there is a Retailer Information booklet to help you. California requires you to keep the paperwork for 4 years. |
| Business property | Keep records of costs and deductions supporting documents until the asset is sold, traded, or disposed of from that date add 7 years. |
| HIPPA paper or digital file | HIPAA log retention requirements are that if a log, note, or record relates to a HIPAA policy or procedure, the log, note, or record must be retained for 6 years. |
| Corporation / LLC documentation | Keeping these papers in a secure place is essential. If you close the business, keep it for at least three years after closing it. Then, you can discard them. |
Well, there you have it. I hope this gives you direction on how to get rid of physical and digital files in your small business. Please leave us a comment below on how you get rid of your digital and physical files. We would love to hear from you.
If you need our admin services for small businesses to take the busy out of your day, check out our brief list of recurring services here.
Excellent post! The chart is incredibly helpful. Employment-related files, legal files, and HIPAA-related files can be the bane of the organizer’s existence. Just when I think I have a handle on something, I’ll have a client who does something very specific, like mental health support for minor children in the foster system, or employees terminated for violating the law due to a medical/mental health condition, and then all bets are off regarding what the state (and I work in multiple states!) will require for records retention.
Meanwhile, I think I’ve watched too many episodes of NCIS (and the like) to feel confident that wiping a hard drive and restoring to factory conditions is enough. Sometimes I feel like we need to wipe the drive, then plunge it to the bottom of the sea, and then drive a tractor over it! 😉
These are all great tips. Some I already knew and some I wasn’t aware of. Thank you so much for bringing these things to my attention.
That’s great! I’m glad it was helpful.
This is a great reminder that our papers and files need decluttering too and you mentioned all the best ways to dispose of them.
There are shredding events that happen often, a simple google search will help locate them. Some trucks have a small charge, but when it’s a big event they’re usually free for the public.
Yes, that is true. However, they usually do not want business’ to come to those events. Some shredder events that are sponsored by the Chamber of Commerce, will allow businesses to bring their papers but will limit the amount to one to two bags.
Very helpful chart on how long to keep all the digital files. That kind of stuff always trips me up. My husband just found a local company that will grind up those hard drives while you watch. Nice to know it is there and easy to get to!