How to Archive Client Files in an Accounting Business
Even though you would prefer to be paperless the reality is, with accounting, few companies can claim that accomplishment. Archiving client files becomes a necessity for most public accounting firms.
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Instructions
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How to Archive Client Files in an Accounting Business
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Your company must make a retention policy and stick to it, regardless of whether the files belong to a current or former client. If your retention policy is to hold all records for ten years and your client leaves while you are storing the past seven years worth of work, do not pull the files and shred them. Be sure to copy any information you used to prepare a client's accounting records and return all originals to the client for him to retain. Explain to the client how long he should hold on to this information according to your guidelines. Always notify your client in writing of your document retention policy so he doesn’t assume you are a permanent storage facility for his benefit. If possible have them sign a notice of agreement of your policy.
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Keep the most recent years files on premises along with the prior two years if you have the room to do so. Require an administrative fee for pulling archived documents for your clients. Otherwise you will find yourself in the business of being a big file cabinet for them. There are certain legal requirements and you must get legal advice in this regard. A good resource for information on record retention is the American Institute of Certified Public Accountants (AICPA). Never destroy a document unless you are certain you have held it as long as is legally necessary.
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Work with a full service document and storage retrieval company. Box your files up chronologically to facilitate purging them when the proper amount of time has elapsed. The storage company should provide you with bar code stickers for the boxes, and, if you prefer, the individual files. This way, you can create a worksheet when you place the documents in storage in case you need the files prior to purging them.
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When you are ready to have the documents shredded, contact a local document shredding company and obtain a certification from the company when you purge your files stating the client documents were shredded.
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Be sure to keep an accurate archived document list at all times to simplify your duties and make your files accessible at all times. Archiving files is a simple solution to the unnecessary legal complications of destroying records.
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