For email records, the simplest way might be to set up specific folders in your mail handling software for potential problem areas. It pays to think worst case scenario in this type of planning. Create a reminder, or use an automatic email backup option such as the one with Microsoft Outlook that regularly will copy only those relevant folders to something like a CD-ROM or DVD. Depending on your comfort level move this backup to a safe deposit box at regular intervals.
As for paper documents, which continue to multiply even in a theoretically paperless office, here are some recognized record keeping guidelines for businesses. In some cases, these may be more stringent than for personal files or even IRS recommendations. When a time frame is given, it refers not to the start of something but when the issue is closed.
Documents related to the formation or operation of a company, contracts, registrations (copyright, patents, trademarks) and legal correspondence: Keep permanently.
Insurance documents: Keep for six years. Claims that have been settled can be discarded after four years.
Tax returns and other tax related records (state sales tax for example): Keep permanently.
The IRS has a guide for keeping business records that every home office should consult. It is Publication 583, Starting a Business and Keeping Records.According to this, if you have employees you must keep all employment tax records for at least four years. As a general IRS rule, keep records that support income or deductions at least until the period of limitations for a tax return expires. This period varies according to different issues that might come up. Consult the IRS publication for specific time periods.
It is all too easy when operating a home office to develop poor habits such as the shoebox record keeping system—throwing everything into a shoebox and planning on sorting it out later. Often, after taxes are done, all this just getsstacked somewhere without a lot of organization. Take a little time up front and save a lot of possible grief down the road!
