The predictions of a paperless society appear to have been premature — most of us have desks and filing cabinets overflowing with invoices, tax forms, bank statements, receipts, advertising tear sheets and more.  The sheer bulk of all this paper can easily begin to overwhelm the space allotted, and make it difficult to find what you need.

There are two things that will make your “backstage” life easier: sorting out your papers to decide what you really need, and organizing what remains.  In many areas paper is now recyclable, which should make it easier for even the most dedicated hoarder (and we’re not talking the TV show extreme) to let go.

But before you start filling up your recycling bin — or heading for a shredding service for sensitive documents — you need to consider which records the government requires you to keep.  There are federal regulations regarding what documents, files and records must be retained, although some of these may not be on paper. 

A good place to start your plan for retaining records is on the IRS small business site.  They helpfully advise that if you file a fraudulent return you should keep records indefinitely. But assuming that you haven’t done that (and I certainly hope you haven’t!), then you need to keep most records for 3 years, and personnel records for 4 years.

Three years would be long enough to keep past invoices as well. You usually only need ready access to one year’s records in order to answer questions about pricing and such — if you have inventory over a year old on your sales floor, you need to be culling that as well as your office records. 

Financial records, which often today are electronic, should be copied and stored off-site (or uploaded).  This is good protection in case of computer failure or fire. It is important for your own long-term business planning to be able to reference your store’s past performance.

You will also want to have a plan for keeping the store’s cultural history alive.  We have photo albums of staff events and window displays, and a binder of memorable employee newsletters (mostly the ones introducing new staff members).  We keep clippings of some of our advertising, and of media coverage about the store.  These archives help employees feel that they are part of an institution with a past — and a future — and are well worth the storage space.

Happy Retailing,

Carol “Orange” Schroeder