There are an enormous number of record and document types that flow through a corporation every year, many of which will be reviewed repeatedly for a number of years thereafter. Without a proper record keeping system, a company will incur substantially higher costs in some areas. All too often, there is no criterion for how long a record is to be retained, and so documents will tend to pile up in a disorderly manner. To avoid this trouble, there should be an official and written policy that carefully itemizes the number of years that each type of document will be stored before it is destroyed. Thus it contains the instruction and the form to maintain the accounts and the record.

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