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Did you know: If you destroy accounting records, you must keep a record of what you've destroyed?

by , 27 August 2014
Believe it or not, but if you destroy accounting records, you must keep a record of what you've destroyed.

This is a legal requirement and failure to comply will result in penalties. Don't take that risk.

Read on to find out more about this legal requirement so you can keep a document destruction record and avoid penalties.


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When it comes to accounting records, you're legally required to keep a record of what you've destroyed
 

As you know, you must keep your accounting records. The Companies Act, for example, requires you to keep the following records for seven years:
 

  • Any document, account, books, writings, record of information i.e. minutes of meeting, notice and agenda;

  • Copies of financial statements; and

  • Copies of accounting records.

 
If you're past the retention dates, you can throw away the records or destroy them.

Just never throw them in the bin because there's always a chance this information could fall into the wrong hands. It may be a good idea to shred them.

But the most important point is you must keep a record of what you've destroyed. This is called a document destruction record. It's important because if you ever want to refer back to these documents, you'll know they were destroyed.

Here's an example of a document destruction record…

 

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Your document destruction record must contain the following information:
 

  • Type of record

  • File/Record name

  • Format

  • Brief description

  • Division/department

  • Date record created

  • Date record destroyed

 
There you have it. If you're going to destroy accounting records, keep a record of what you've destroyed.

If you need more information on accounting records, check out the Practical Accountancy Loose Leaf Service.
 



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