Accountants and bookkeeping firms collect, process, and store a large number of physical and digital documents every single day. There is a lot of documentation required for tax purposes for every business, including specific tax documents, receipts, employee bank statements and financial interactions with suppliers. Any type of transaction or financial interaction for a business must be documented and stored securely for a set period of time. For the accountants and bookkeepers managing this process on behalf of a business, this makes it important to understand the shredding solutions for finance professionals that look after document destruction in the correct manner.
Key Risks of Improper Document Disposal for Accounting Firms
It’s important to take on board document preparation tips as an accountancy or bookkeeping firm to ensure that documents are disposed of securely. There are a few dangers to improper document disposal in the finance industry, including:
Sensitivity of financial data
Accounting firms and bookkeeping companies handle a large amount of data at all times. This data includes tax returns, bank statements, payroll records, investment portfolios, and everyday financial transactions. Much of this would be deemed sensitive in nature, and it is vital that companies protect client confidentiality at all times. Improper disposal of this data when the time comes, puts client privacy at risk.
Legal compliance
All companies must adhere to GDPR, ensuring that all personal data is handled and disposed of as securely as possible. This protects personal privacy and sensitive financial information, and all regulatory compliance must be met at every stage of the lifecycle of the data, from creation and collection through to its destruction.
Identity theft
A big risk should data be destroyed in an improper way is that personal and financial records are stolen and used to perform identity theft. This can include specific tax information, address, and financial details that can be used by cybercriminals.
Non-compliance
Non-compliance with regulations relating to the disposal of personal and financial data can lead to heavy fines which can cause damage to the cash flow and practice of a company. Alongside this there is also the potential reputational damage to be aware of.
How Secure Shredding Helps Meet Regulatory Requirements
When you are thinking about how to choose the right shredding service for your accounting and bookkeeping firm there are a few things to consider to ensure you meet all regulatory requirements. There is a general obligation to keep certain tax records for 6 years before you can dispose of it, although if the records are required for an investigation, inquiry, claim, assessment, or other legal proceedings, they must be retained until this has concluded. A regular shredding service ensures that documents that are ready to be disposed of can be removed and destroyed in a secure manner that meets all regulatory requirements.
Choosing the Right Shredding Service for Your Firm
It’s important to work with a document shredding company that meets your specific needs. Choose a service that understands the finance industry and the specific and sensitive nature of accounts, tax returns, and a wealth of other financial transaction documents that must be destroyed in a secure manner that meets all strict industry regulations and GDPR. Finding a solution that meets the specifics of your site in terms of off-site or on-site shredding, alongside the regularity of the service, all play a part in choosing the company you work with.
Benefits of Regular Shredding for Accounting and Bookkeeping Firms
Utilising the expertise of a regular shredding service for accounting and bookkeeping firms brings with it a range of benefits, including:
- Convenience – it is an effective and simple way to take the pressure off your staff and dispose of large volumes of confidential and sensitive financial information.
- Comply with regulations – GDPR and industry-specific regulations must be complied with to ensure brand reputation integrity and to ward off potential fines for improper destruction of documents.
- Improve efficiency – Paper and digital documents take up a lot of space once they are past the age of legal storage requirement. This space can be freed up for better use and storage of new documents efficiently.
- Environmental – By recycling shredded documents, your finance firm can significantly reduce its carbon footprint.
Conclusion
The Pulp shredding service provides you with an effective, secure way to dispose of both digital and physical documents and materials. We understand how important it is for accountants and bookkeepers to be thorough and exact with maintaining records. With so many financial transactions and documents relating to payroll, finance, and any other financial aspect of a business, there is a lot to manage. When the time comes to dispose of these records, our expert team is here to help, ISO9001 accredited, with EN15713 shredding standard incorporated. It is easy to request a quote today and speak with our experts to evaluate your current shredding process and how we can help enhance security and regulatory compliance.
