LEHIGH VALLEY
BOOKKEEPERS
Electronic Record Retention
Electronic Record Retention Requirements
The storing of financial records used to be a tricky subject, especially when it came to organizational fears about a potential audit from the Internal Revenue Agency (IRS).
Finally, within past decade or so, IRS started to catch up with the rapid changes occurring in technology and electronic data retention industries. While we have not seen major changes in timeline and substance retention requirements, we have witnessed major occurrences in IRS's paper vs. electronic copy retention expectations.
Based on IRS Recordkeeping Requirements - Electronic Storage System (Code Sec. 6001), organizations are free to store financial record electronically so long as the chosen procedures meet these record keeping principles:
"The electronic storage system must index, store, preserve, retrieve and reproduce the electronically stored books and records in legible format. All electronic storage systems must provide a complete and accurate record of your data that is accessible to the IRS. Electronic storage systems are also subject to the same controls and retention guidelines as those imposed on your original hard copy books and records. The original hard copy books and records may be destroyed provided that the electronic storage system has been tested to establish that the hard copy books and records are being reproduced in compliance with IRS requirements for an electronic storage system and procedures are established to ensure continued compliance with all applicable rules and regulations. "
In other words, information must be easily accessible, accurate, complete, and tested to establish that the hard copy books and records are being reproduced in compliance with IRS requirements.
Our secure electronic storage applications have been tested and recognized as safe, secure, and acceptable by IRS. We scan and save documents based on these requirements. Moreover, when our clients choose to destroy the original hard copies, they rest easy because our IDEAL document shredders meet DIN-66399 standard, Security Level P-4 classification, recommended for "data carriers with particularly sensitive and confidential data".
By becoming our clients, businesses annually save thousands of dollars during tax seasons because of our financial planning approach and scrupulous transaction application, reduce paperwork and clutter, have full access and understanding of their financial records, and most importantly concentrate on what's most important, managing day-to-day operations.
So, why not join us now?
Are you ready to make an appointment to have your
company's bookkeeping needs resolved?