What is a business records retention policy?

A business records retention policy is a set of rules and regulations dictating how business records must be kept. In Texas, the policy is set by the Texas State Records Retention Schedule. The policy requires businesses to keep certain documents for specific periods of time. Depending on the type of business, different documents must be kept for varying periods of time. Generally, the documents must be kept for seven years after the filing date of the last document or four years after the end of a business’s tax year. The policy covers documents such as invoices, contracts, receipts, bank statements, and accounts payable/receivable records. These documents are essential for running a successful business; they provide an accurate description of the operations, financial dealings, and transactions of the business. Keeping business records in an organized and up-to-date manner facilitates compliance with federal, state, and local laws and regulations. The State Records Retention Schedule also specifics that businesses should have an internal system to manage their records. This includes indexing the records and notifying staff when certain documents need to be filed or when records must be destroyed. The policy also requires businesses to verify their records periodically to ensure accuracy and completeness. By following the Texas State Records Retention Schedule, businesses are better positioned to comply with the law, ensure accurate recordkeeping, and protect the financial well-being of the business.

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What is a business records retention policy?

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