As April 15 approaches and tax season winds down, it’s tempting to breathe a sigh of relief and move on. But for your business, proper records management shouldn’t end when tax season does. Staying organized and maintaining accurate, secure records throughout the year not only simplifies next year’s tax prep but also ensures compliance and protects your business from audits, penalties, and other costly issues.

Here are five practical and effective strategies to help your business stay on top of its records—during tax season and every day after.

1. Organize Your Financial Records

Keeping your financial records well-organized is key to a smooth and stress-free tax season. By tracking income, expenses, invoices, and receipts all year long, you avoid last-minute scrambling and reduce the risk of errors.

Document Categorization

Create a clear filing structure with specific categories such as sales invoices, vendor bills, payroll records, tax forms, and receipts. This makes it much easier to locate documents when you need them.

Stay Up to Date

Don’t wait until year-end. Make it a habit to enter documents into your system on a regular basis. This helps prevent missing information and keeps everything accurate and current.

Consider a Professional Partner

A records management company can help streamline this entire process. Their systems allow for easy document indexing and retrieval—saving you time and hassle all year long.

2. Establish and Follow Document Retention Policies

Having a clear document retention policy is a must. It helps ensure you’re in compliance with federal and state tax regulations, especially if you’re ever audited.

Know What to Keep (and for How Long)

Different types of financial documents have different retention requirements. For instance, the IRS generally requires businesses to keep tax-related documents for 3-7 years. Be sure to research what’s applicable to your business.

Review Policies Annually

Tax laws and guidelines change, so it’s wise to review and update your retention policies regularly to stay in compliance.

Partner with Experts

Managing records and compliance can be complex. A professional records management service with expertise in legal retention timelines can help ensure you’re always covered and operating efficiently.

3. Implement a Strong Backup and Recovery Plan

Losing financial records can be devastating, especially during tax time. A reliable backup system is essential to protect against data loss from hardware failures, cyber threats, or accidents.

Use Redundant Systems

Follow a layered backup strategy by keeping local copies (like external drives) and remote backups (such as cloud storage). This redundancy gives you peace of mind that your records are safe.

Automate Your Backups

Set up regular, automatic backups—weekly or even daily. This ensures your records are consistently saved without relying on manual effort.

Adopt the 3-2-1 Rule

Store three copies of your data: one primary and two backups. Use two different types of media and keep one copy off-site. A records management company can help you follow this proven strategy for maximum data protection.

4. Train Your Team on Secure Document Handling

Your employees play a big role in keeping your records secure. Providing training on how to properly handle and store documents can help prevent mistakes, data breaches, and even fraud.

Educate on Tax Compliance

Offer regular in-house or online training sessions on tax responsibilities, documentation standards, and compliance best practices.

Enforce Data Security Protocols

Make sure staff understand how to use strong passwords, avoid shared logins, and only use secure methods for sharing financial data. Encrypt sensitive communications whenever possible.

Raise Awareness About Scams

Tax season often brings an uptick in phishing and scam attempts. Teach employees how to recognize suspicious emails or calls and what to do if they receive one.

5. Securely Shred Outdated Documents

Records management isn’t just about what you keep—it’s also about how you get rid of what you no longer need. Disposing of old financial documents in a secure and compliant way protects your business from data leaks and identity theft.

Shred Paper Documents

Don’t just toss old paperwork in the trash. Partner with a NAID AAA Certified shredding service to ensure sensitive documents are destroyed securely and completely.

Destroy Digital Data Properly

Deleting files isn’t enough—for true protection, hire a professional shredding service to destroy hard drives and other digital storage devices.

All-in-One Services

For convenience and better protection, consider working with a company that offers both records management and secure shredding. Keeping everything under one roof makes it easier to stay compliant.

The Benefits of Strong Records Management

Investing in good records management has year-round advantages. Not only does it streamline tax prep and reduce stress, but it also:

• Minimizes the risk of costly errors and penalties
• Keeps you audit-ready at all times
• Saves time and boosts day-to-day operational efficiency
• Helps protect against data breaches and security threats

In short, keeping your records organized, secure, and accessible is one of the smartest moves you can make for your business.

Let DeVries Business Services Help

At DeVries Business Services, we offer year-round, compliant records management solutions to help your business stay organized and efficient. We also provide NAID AAA Certified shredding services to securely dispose of sensitive documents and electronic media.

Start the new tax year with confidence—call us at 866-433-4691 or complete the form on this page to get started today.