Accountants
/ CPAs --
Do You Know Why You Should
Shred? |
CPA’s
CPA’s have a legal
obligation to have client records
properly destroyed, or they may find
themselves in direct violation of the
1974 Federal Privacy Act (www.ftc.gov/foia/privacy_act).
Additionally they must comply with the
Gramm-Leach-Bliley Act of 1999 (www.ftc.gov/privacy/glbact).
There is an implied contract between an
accountant and client whenever the CPA
asks for personal and financial
information, and the information must be
protected. Surely, your clients would
not be happy if they knew their
financial data was available in last
nights trash. Even delicate documents
within your office must be protected.
Confidential information such as
personnel records, salary reviews, and
insurance data should be shredded when
no longer needed. Records management
studies indicate that less than 30% of
information in a company’s files should
be stored: 70% are either duplicates or
obsolete.
A professional
document destruction company which will
destroy end-of-retention files can
supply an effective legal protection by
providing a notarized
document-destruction certificate that
proves a third party shredded the
files. The company is in compliance
with all identity-theft laws and acts by
properly disposing of end-of-retention
files and possessing proof thereof.
Legally disposing of these records
decreases the time and effort needed to
search for files.
Outsourcing
document-destruction also saves time and
money because the individual or company
no longer needs to own, or lease, and
then maintain, a consumer shredder
designed to handle only a few sheets of
paper at a time. Commercial shredders
easily handle thick files, metal clips,
and staples. A typical drawer of files
weighs approximately 60 pounds. A
commercial shredding company can shred
30 to 50 such storage boxes per hour.
Finally, 17 trees
are saved for every ton of paper that is
shredded and recycled. Utilizing a
professional shredding company helps the
environment because all shredded
material is recycled rather than used in
a landfill.
