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The importance of records management

Discuss the importance of records management in maintaining a successful and functional office in a business environment.

Subtopic 1: Discuss the legal requirements for the retention of business records.
Subtopic 2: Discuss the business uses and needs for records retention, retrieval and disposal.
Subtopic 3: Discuss how records creation, organization, retention and retrieval meet business information needs. Include a discussion of the virtual office and off-site work product.
Subtopic 4: Discuss how coding affects storage, and retrieval.
Subtopic 5: Describe how technology has impacted the process of records management.
Subtopic 6: Identify current trends in records management including the need for disaster recovery, increased security and protection of privacy.

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1.Businesses that employ people other than the owner or owners are required by the IRS to keep detailed payroll records. Twenty different types of records must be kept by businesses for income tax withholding, Social security taxes and Federal Unemployment taxes. These records must be kept for at least four years from the time the relevant taxes were due or paid. Records must also be kept for all types of insurance pertaining to a business (for example, vehicle insurance, life insurance and health insurance). According to the IRS all businesses must keep records sufficient to establish the amount of gross income, deductions and credits within a business. Taxpayers are required to transfer paper records or computerized records to electronic storage media. The procedure allows the IRS to test these storage systems periodically without conducting an audit. If results do not comply with regulations the business owner may be subject to penalties.

2. Businesses establish three main types of records: income, expenses, and capital expenditures. They should be kept constantly. In the case of expenses records should prove that an expense has incurred and how it was related to business. Business owners must also keep records for major captial pruchases to determine depreciation for tax purposes. These records must include the date and place of purchase, description of the item, the amount paid, how it was purchased and the date it was put into service for the business. This allows business owners to track their progress, identify problems, and take advantage of possible tax ...

Solution Summary

Business records are an important part of maintaining a sucessful and functional office environment. The following solution discusses the purpose for records management and how it meets the needs of businesses.

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