Securely shredding sensitive documents is vital for everyone.  This is especially true when documents pertain to a business’s finances and accounting.  From protecting sensitive data to client confidentiality, we will explore why shredding documents is important.

Protecting Sensitive Data

Protecting sensitive data focuses on preventing unauthorized access, disclosure, and misuse of the information.  The goal is to maintain the integrity and confidentiality of private data.  This helps to prevent larger issues like data breaches and identity theft.  

For this reason, shredding sensitive documents should be done regularly.  Especially, if a large volume of such documents is routinely handled.  If this is the case, professional shredding services offer a secure and compliant solution. 

Compliance with Legal Regulations

While there are no comprehensive federal data privacy laws in the US, many states have enacted privacy laws.  This requires businesses to obtain consent for the collection, and use of sensitive information. 

In general, it also requires businesses to take reasonable measures to destroy the information or, at the very least, make it difficult to read.  If the data protection processes are lacking, penalties may be incurred.  Verifying which laws apply to specific States to ensure proper compliance is recommended.

Maintaining Client Confidentiality

While we will discuss privacy laws later on, there are also legal and ethical obligations to clients that must be prioritized.  Maintaining client confidentiality is a fundamental obligation for any financial professional.  

It protects both the client and the business itself which helps to foster stronger relationships between both parties.  Secure shredding helps ensure compliance with privacy laws.  Needless to say, this is crucial to be successful for any business that handles finances and accounting.

Protecting a Business’s Reputation

Financial data that is lost or stolen can potentially (and easily) cause reputational damage.  While the stolen information alone can be damaging, the fact that the enterprise allowed such confidential information to be discovered is even more cause for concern.

For this reason, significant regulatory consequences are in place for failing to ensure security. These consequences apply throughout the disposal of such material.  Organizations operating in the financial or accounting sector must have proper shredding processes.

Regulations

There are many regulations and laws for those in the accounting and financial sector to abide by.  Some of these refer to how the business disposes of physical data.  

Having a secure document shredding process places the responsibility on the service provider entrusted with the job rather than the business itself. Secure shredding providers have access to the most efficient equipment promising to have the job done correctly.

Risks of Improper Document Disposal

Throughout this article, we have discussed the importance of proper document disposal via shredding.  But, what if the documents aren’t disposed of properly?  

One misplaced file such as an invoice or customer registration form can leave clients susceptible to potential threats.  The goal is to keep the names, social security numbers, and addresses of clients/ employees protected from being exposed.  Thorough document shredding prevents sensitive information from being shared amongst the wrong people.  

The consequences of not shredding important documents can lead to possible data breaches, loss of intellectual property, and legal consequences.  All competitive advantages that the business may have can quickly be lost if others gain access to sensitive information.  This will likely lead to further reputational damage and financial losses.

Businesses, especially those handling finances are legally obligated to protect sensitive data.  Fines and criminal charges may even be placed if there is a failure to do so.

Which Documents Should Be Shredded?

Some of the most common types of documents that need shredding include:

• Bank and credit statements,
• Tax documents (including employment tax records),
• Property purchase documents,
• and many other customer documents

It is always wise to first check if there are mandatory retention periods for any documents potentially being destroyed.  The IRS may recommend retaining certain documents for a specified time. For example, keeping employment tax records for at least four years.  Other documents such as internal financial records should be kept forever.  

Benefits of Shredding Documents with Professional Services

Shredding physical documents is one of the most effective ways of protecting data from unauthorized collection and use. This is why investing in its proper disposal is one of the best decisions that can be made.

It may be tempting for businesses to shred their documents on their own in an attempt to save money.  It seems like the cheaper solution, however, it may cost businesses more to have it done by their staff.  

With professional shredding services, there is no need for business employees to stray from their usual tasks.  It is likely that they already have enough on their plates!  They would not devote the attention necessary to shred documents adequately when compared to what professional shredding companies can provide.  This ensures even further care and security is provided.

Finance and accounting services may have better shredding equipment than other businesses. However, it simply doesn’t compare to what professional customized shredding services can provide.  Professional shredding services use industrial cross-grade shredders.  These offer the best results at a fraction of the cost of what a company would spend buying their own machinery.

Secure Document Shredding Services

To fully protect your clients and business, shredding sensitive documents is absolutely mandatory.  Whether to prevent identity theft and fraud or to properly comply with regulations, trust IDSAutoShred!  Financial record shredding will be done securely. This will offer peace of mind and ensure confidential information stays confidential.  

IDSAutoShred uses the best equipment for all document shredding services to ensure full compliance with privacy policies.  To better accommodate your financial record shredding needs, on-site and off-site shredding services are available. 

For more information, don’t hesitate to contact us at (877) 886-4732 or online here.  Our team of experts will answer any questions you may have about our services. We promise that you will be left feeling confident that the job is handled with discretion and professionalism.