Back in 2007, Erin wrote a series of posts on reducing paper clutter. In the past 10 years, there have been many changes. In some cases, the rules and regulations regarding the access and storage of paper and digital documents have changed. Technology itself has changed, and since more and more information is coming to us in electronic format, many of us are now overwhelmed by paper and digital clutter.
So, let’s look at this subject from the “managing information” point of view.
In the business world, organizing paper and electronic documents is commonly referred to as records and information management (RIM). Businesses have (or should have) systems set up to create, store, archive, and dispose their documents according to rules and regulations pertaining to their specific industries. Our homes are not businesses but there are several similarities. We have records related to income and expenses (receipts, pay statements). We have documents that prove we exist (birth certificates, social security cards) and that we have done things (school report cards, employment reviews).
We can adapt RIM theory to our households. ARMA International has developed Generally Accepted Recordkeeping Principles® (GARP). Let’s see how these principles can be applied to our personal and household recordkeeping.
Accountability: Someone in your household needs to be responsible for managing paper and electronic documents and information. If information management is to be a shared duty, ensure all of those who participate in the process know which tasks need to be done and how they should be done.
Integrity: Your paper and electronic documents need to be authentic and reliable. Ensure you have the original documents where required. If you transfer your paper documents to electronic format (or vice versa), ensure it is done properly. We will cover how to do this in an upcoming post.
Protection: Your records need to be safe. Paper documents, especially vital records and legal documents, should be kept in a locked safe or filing cabinet. Electronic records should be backed-up in at least two different places and password protected.
Compliance: You need to adhere to all laws and regulations pertaining to your information. If you have a home business, you might be required to keep different information from someone who does not. Those with unique financial or medical situations may be required to comply with other rules and directives. We’ll cover more about this in an upcoming post.
Availability: This is a key point for most people. You need to be able to access records easily and in a timely manner. Knowing which documents are paper and which are electronic, as well as where, and how they are stored is essential. We’ll review paper and electronic filing systems.
Retention: It is important to keep records for the required period. For example, the United States Internal Revenue Service requires that you keep your income tax records for three years after filing (and up to 7 years in certain circumstances). The Canada Revenue Agency requires six years. If you have receipts that were submitted for income taxes for both countries, you must keep records for the longer of the two. We’ll discuss a retention schedule that will help you develop an organized filing system.
Disposition: Most records need to be destroyed at the end of their lifecycle either by physical destruction such as shredding paper or destroying CDs, or by securely erasing/reformatting computer drives. Eliminating unneeded records saves space in your filing cabinet, saves time because you don’t have to manage so much stuff, and reduces your risk of identity theft because unneeded information is destroyed. However, you may wish to keep some records for your archives (e.g. stub from your first pay check, ownership papers from your first car, etc.)
Transparency: Finally, it is important that your system understandable to certain other people. Of course, if you’re sharing these duties with a spouse/partner, you both need to understand the system. You also need to be able to explain it to an auditor (should the tax man ever visit) and the executor of your estate should be able to easily understand how you process your documents as well.
We’ll dive deeper into all of these topics over the next few weeks. By the time we’re through, you’ll have an excellent, easy-to-manage filing system.