All businesses whether big or small have the responsibility of maintaining proper records and books to take into account all the business activities they have performed. This has to be done for a number of purposes like filing tax returns, auditing any financial reports or for a review among various other things. They need to summarize, gather and analyze certain facts to come to a conclusion. Once these records have served its purpose, the big question of how long it has to be retained and how it has to be disposed of comes into the picture. One way to ensure legal compliance is to use Professional Paper Shredding for Accountants.
The Various Laws Pertaining to Shredding Documents and Records for CPAs
Thanks to so many cases of financial fraud coming out these days, the laws with regards to document destruction have become a lot stricter. A lot more emphasis is being given to an accounting professional’s document accountability and ethical conduct to maintain the privacy of the clients. Here are certain laws and regulations that every company needs to take care of before destroying them:
According to FACTA or The Fair and Accurate Credit Transactions Act which came into effect in 2003, all documents that contain classified consumer information have to be properly disposed of. By proper disposal we mean pulverizing, shredding or burning in such a manner that no information whatsoever can be reconstructed from them.
According to the Sarbanes-Oxley Act which was enacted in 2002 all companies have to retain each and every electronic and paper record they generate for a minimum of five years. The act also requires that public companies evaluate and disclose their internal control which means that an internal document destruction and retention policy is decisive.
Graham-Leach-Bliley Act or GLBA
According to this act which is also known as Financial Services Modernization Act, all financial institutions need to have a proper written information security plan.
Benefits of Professional Paper Shredding for Accountants
Although most businesses have now installed their own shredder in their office, here are some reasons why you need to look beyond them:
Leave the Staples In!
You do not have to remove paper clips or staples from the documents as most ShredGreen, Inc. shredding trucks destroys them without any difficulty saving you time and paper cuts.
ShredGreen, Inc.comes to your organization instead of you coming to us. So you do not have to bother loading and unloading boxes or stacks of paper.
When you outsource the document shredding process to ShredGreen, Inc., the security is guaranteed as the documents go stra
ight to the shredder from your office. The best part is all the shredded waste gets recycled.