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Essential Rules for Record Retention During an Office Liquidation

December 24, 2022 by CRS Corporate Relocation SystemsCleaningCommercial Storage

Even though many businesses have digital backups of their files, a business is still obligated to retain physical records for a certain period of time. In New York, for instance, the standard time that a business needs to retain its records is for at least three years. Knowing what the retention process is like in New York can make it easier for you and your employees to keep records. This information can be used to create a retention policy that your business can follow, especially in the event of an office liquidation. 

Although it’s still important to keep physical copies of those records, not every business has the space or wants to give up space to store massive amounts of physical paperwork. CRS Moving & Storage is dedicated to offering secure record retention services as a solution for business. Our facilities allow you to keep track of your records without them cluttering your business. Contact us today to learn more about our record retention services that can help your business succeed. 

Essential Rules for Record Retention During an Office Liquidation

There are many parts to an office liquidation, but one of the most important is record retention. Important business records must be retained for a certain period after an office liquidation. However, it can be challenging to know how to approach the process. Below are essential rules to keep in mind when thinking about record retention during an office liquidation. 

Know the Minimums

You’ll need to keep important records for a period of time after the liquidation depending on the type of document. These are some documents that come with legal requirements for retention, and it’s important to look into those requirements before the liquidation is complete. Most documents should be retained for at least three to seven years. 

Create a Policy 

Knowing how long you need to retain documents allows you to create an effective retention policy. Record retention might not be something you think about on a daily basis, especially in the midst of an office liquidation. This is why it’s important to know the minimums before the office liquidation begins. The record retention policy should outline how long each type of document must be retained and how to get rid of the documents once that retention period has passed. 

Store Records Safely

Part of retaining records is keeping them safe throughout the entire time. There’s no use in retaining records if they’re destroyed or damaged in their storage. One of the best options for record retention is to work with a commercial moving company that offers exceptional record retention services that provide you with confidence that they’ll remain safe and ready to access whenever needed.

Why It’s Important to Keep Records After an Office Liquidation 

IRS audits are a big reason for businesses to be on top of their record retention during an office liquidation. Business owners must present tax filings and supporting documents if they are audited or wish to amend previous tax returns. Furthermore, there are various other reasons why record retention is crucial, including:

  • Lenders require income, sales history, and other documents. 
  • When negotiating with landlords, insurers, and other vendors, they need to have a clear and written history of previous leases, insurance policies, and other contracts.
  • If you decide to sell, potential buyers will want to review the historical record for due diligence.
  • If, in the process of liquidation, the business or you become involved in a dispute or lawsuit, you’ll need the records to support your position.

The records you store must be in acceptable condition so you can refer to them as needed. Below are essential rules to follow for record retention during an office liquidation.

Utilize CRS Moving & Storage’s Secure and Trustworthy Record Retention Services 

When it comes to sensitive business records, hiring a respected company with the technology, security, and experience necessary to ensure their safekeeping is essential. CRS Moving & Storage offers a variety of benefits for storing your records securely. We understand the importance of safeguarding these documents and going the extra mile to ensure their protection. Learn more about our services by completing our online contact form or by calling (718) 424-6000.

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