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Content
- Document Storage - More Than an Archive
- What are the costs of storing unnecessary documents?
- Documents also mean responsibility
- Document retention periods - why are they important?
- Personal data provided under GDPR
- How to know when an archive needs to be reviewed?
- Document Lifecycle
- Most Common Mistakes in Document Management
- Document shredding
- Frequently asked questions
- Conclusions
What is the cost of storing unnecessary documents in a company?
Corporate documents are one of the most important information resources. They confirm transactions, document decisions made, ensure compliance with regulatory requirements, and serve as evidence in resolving legal, financial, and administrative matters.
Therefore, document storage is not just an administrative duty. It is an essential part of corporate governance, risk management, and information security.
Simultaneous document accumulation is inevitable. Every day, new contracts, invoices, personnel documents, project materials, client documentation, and other information are generated at companies. Some of these documents must be kept for several years, others for significantly longer, and some documents must be preserved permanently.
However, document storage is not an indefinite process. Each document has its own lifecycle – from creation to secure destruction. If documents are stored for longer than regulations or the company's actual needs dictate, they transform from a valuable information resource into an administrative burden.
Storing unnecessary documents incurs costs, increases information security risks, and complicates document management. While these consequences are not always visible in financial statements, they affect a company's efficiency and resource utilization in the long run.
Document storage is a continuous management process
Document retention doesn't just mean placing documents on an archive shelf. It's part of the document lifecycle and includes:
- document classification;
- listing and registration;
- secure storage;
- access rights management;
- shelf-life monitoring;
- ensuring document accessibility;
- document lifecycle closure.
Regardless of whether documents are stored in the company archive or with an outsourcing provider, the company retains responsibility for the security of the information they contain.
FACTS
Document retention does not end with archiving. Responsibility for documents remains throughout their retention period until they are securely disposed of.
What are the costs of storing unnecessary documents?
The most significant costs are for archive space and equipment, however, they only make up part of the total costs.
Less noticeable, but often more significant, are the indirect costs:
- employee time for document search;
- archive administration;
- document management;
- additional shelves and archive boxes;
- Room maintenance;
- Information security assurance.
The larger the archive becomes, the more complicated it becomes to manage the information within it.
Even a few minutes regularly spent searching for documents can turn into dozens of work hours over the course of a year.
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PRACTICAL EXAMPLE
What does 200 archive boxes actually mean?
Let's say that in a company archive, there are stored 200 archive boxes with documents,
The shelf life has already expired.
Even if these documents are not used daily, the company continues to:
- ensure their storage;
- maintain records;
- rent office or warehouse space;
- ensure the protection of the information contained therein.
Conclusion:
Company resources are being used to store documents that no longer have legal or practical significance. The larger such an archive becomes, the greater the indirect costs and administrative burden become.
Company resources are being used to store documents that no longer have legal or practical significance. The larger such an archive becomes, the greater the indirect costs and administrative burden become.
Documents also mean responsibility
Company archives often contain documents that include:
- person's data;
- financial information;
- trade secrets;
- customer data;
- Personnel information.
While documents are stored, the company has an obligation to ensure:
- confidentiality;
- integrity;
- accessibility;
- protection against unauthorized access.
The longer documents that are no longer justified are kept, the longer the company assumes responsibility for the data contained within them.
Šobrīd esmu apmācīts tikai angļu valodā.
Document retention periods help ensure a balance between the need to keep documents and the obligation not to retain them longer than necessary.
In Latvia, document retention requirements are established by:
- Archives Law;
- Cabinet of Ministers Regulation No. 748 “Regulations on Document and Archive Management”;
- Accounting Law;
- city specific regulations.
The expiration of a document's retention period does not mean automatic destruction. The company must first assess whether there is still a legal or practical justification for retaining the document.
OVERVIEW
Most common documents
Document retention periods depend on the type of document and the applicable regulations.
| Document Category | Shelf life |
|---|---|
| 📁 Accounting documents | In accordance with the Law on Accounting |
| 👥 Personnel documents | Depending on the document type |
| 🤝 Agreements | Depending on the contract and the term of the obligation |
| Safety at Work Documents | According to special regulations |
| 📑 Procurement documents | Pursuant to applicable regulations |
IMPORTANT
The precise document retention period is always determined by evaluating the specific type of document and the applicable legal acts. For documents within the same category, retention periods may vary depending on their legal significance and the applicable regulations.
Personal data provided under GDPR
If the documents contain personal data, the company must comply with the General Data Protection Regulation (GDPR) requirements.
One of the basic principles of the regulation stipulates that personal data must not be stored for longer than is necessary for the purpose for which it was collected.
This means that the company must regularly assess whether the continued retention of documents is still justified.
How to know when an archive needs to be reviewed?
Usually, several signs indicate the need to organize archives:
- archive rooms are getting crowded;
- Finding documents is becoming time-consuming.;
- The retention period review has been completed;
- New shelves or archive boxes are regularly purchased;
- The company is preparing for an office relocation or digitalization.
Regular archive evaluation helps maintain effective document management.
INFOGRAPHICS
Document lifecycle
Every document has a defined lifecycle – from its creation to its secure disposal.
Effective document management means managing each of these stages.
📝
Document creation
The document is being prepared and registered.
➜
💼
2. Daily use
The document is used in the company's operations.
➜
📦
3. Archiving
The document is being handed over for storage in the archive.
➜
🔎
4. Deadline Evaluation
It is being evaluated whether to continue storing the document.
✅
Turnip storage
If the document still has legal, administrative, or practical significance, its retention continues for the established period.
Trash can
Safe destruction
If the retention period has expired and there is no obligation to retain the documents, they are safely removed from circulation.
💬
EXPERT COMMENTARY
Regular archive review reduces risks
In many companies, archives are only reviewed when there's a lack of space for document storage. However, a more effective approach is to regularly—for example, once a year—evaluate document retention periods and document relevance.
Regular archive review helps maintain an organized document management system, reduce administrative workload, improve information accessibility, and promptly identify documents that no longer have a legal or practical basis for retention.
At the same time, this approach helps to reduce the risks associated with storing personal data and other confidential information, and also promotes compliance with regulatory and information security requirements.
Most Common Mistakes in Document Management
In practice, companies most often make the following mistakes:
- documents are stored for longer than necessary;
- storage periods are not regularly reviewed;
- there is no established procedure for document destruction;
- The archive does not separate active and inactive documents.;
- Document destruction is not documented.
Such situations increase the administrative burden and information security risks.
Document destruction concludes the document lifecycle
If the retention period for a document has expired and there is no obligation to retain it longer, the document's lifecycle can be closed.
Secure document destruction ensures that information contained in documents can no longer be recovered or used.
Regardless of the chosen solution, it is important to ensure that the process is:
- safe;
- controllable;
- trackable;
- documented.
Frequently asked questions
Can a company store documents longer than the prescribed period?
Yes, if there is an objective legal or practical justification, such as litigation or an audit.
Can documents containing personal data be thrown in the paper recycling bin?
No. They must be destroyed in such a way that the information can no longer be recovered.
Do electronic documents also have retention periods?
Yes. Retention periods apply to the content of a document regardless of its format.
How often should the archive be reviewed?
It is good practice to review archives regularly, for example, once a year or before significant organizational changes.
Conclusions
Effective document management doesn't mean storing documents for as long as possible. Its goal is to ensure that documents are available for as long as they are needed for the company's operations and regulatory compliance, and then are securely and controllably removed from circulation.
Regular assessment of retention periods, an organized archive, and thoughtful document lifecycle management help reduce administrative costs, utilize company resources more efficiently, and mitigate information security risks.
An organized archive is not just a matter of tidiness. It is a testament to the quality of corporate governance, responsible information flow, and sustainable document management.
About articles
The article was prepared based on the requirements of Latvian regulatory acts in the field of document management, the principles of the General Data Protection Regulation (GDPR), and Shredders practical experience in working with company document management and secure document destruction processes.
Legal Acts and Sources
Saeima (2019). Archives Law. https://likumi.lv/ta/id/221810-arhivu-likums
European Parliament and Council. (2016). Regulation (EU) 2016/679 of the European Parliament and of the Council of 27 April 2016 on the protection of natural persons with regard to the processing of personal data and on the free movement of such data (General Data Protection Regulation). Official Journal of the European Union, L119, 1–88. https://eur-lex.europa.eu/eli/reg/2016/679/oj
Saeima (2021). Accounting Law. (2021). https://likumi.lv/ta/id/324249-gramatvedibas-likums
Cabinet of Ministers. (2024). Cabinet of Ministers Regulation No. 282 “Regulations on Document and Archive Management”. https://likumi.lv/ta/id/303219-dokumentu-un-arhivu-parvaldibas-noteikumi