5 Records Management Best Practices

Modern organizations cannot rely on an inconsistent or improvised approach to maintaining records. Rather, a structured methodology is essential for effective, profitable, and compliant operations. Effective records management ensures that information is stored, accessed, and disposed of properly, supporting legal requirements, maintaining transparency for stakeholders, and enhancing efficiency at a global scale.

We’ve put together this article to provide practical insights into solid records management for entrepreneurs and multinational companies alike. Importantly, the piece takes a global perspective, ensuring relevance no matter where in the world business leaders are operating.

Understanding Records Management

Records management refers to the systematic control of information from its creation or receipt through to its final disposition. This includes policies and procedures for classifying, storing, retrieving, and eventually disposing of records. Records can include anything from contracts and tax filings to employee data and customer correspondence. The goal here is to maintain integrity, security, and accessibility throughout the record’s lifecycle.

Traditionally, records management was paper-based, with physical filing systems and manual retrieval processes. While this is still present in many organizations, electronic records management tends to be increasingly prevalent, using digital platforms to organize, store, and protect information. The shift has brought significant advantages in speed, searchability, and efficiency. At the same time, it has introduced new challenges, particularly in data privacy and cybersecurity.

Global businesses face additional complexity. They must comply with varying regulations in different jurisdictions, from tax record retention rules to data protection laws such as the EU’s General Data Protection Regulation (GDPR). Failing to manage records correctly across these regulatory landscapes can result in fines, legal disputes, and reputational damage.

5 Records Management Best Practices

1. Establish Clear Policies and Procedures

The foundation of effective records management is a comprehensive set of policies and procedures. These written guidelines should address how records are created, classified, stored, accessed, and ultimately disposed of. For multinational organizations, all policies must align with international standards and local legal requirements in every jurisdiction where the company operates. This is also important when exploring how to turn a freelance job into a business.

Alongside creating the policies, these should also be communicated clearly to employees at all levels. Regular training sessions and accessible reference materials can reinforce good practices.

2. Implement Secure and Accessible Storage Systems

Records management requires storage systems that are both secure and user-friendly. This often means combining physical storage for essential paper records with robust digital systems for the majority of information. 

Secure cloud storage solutions have become increasingly popular, offering scalability and access from anywhere in the world. However, strong encryption and multi-factor authentication are vital for protecting this sensitive data from unauthorized access.

Balancing security with accessibility is critical. Records should be available to authorized personnel without creating unnecessary barriers that slow operations. Businesses must also plan for contingencies such as data backups and disaster recovery systems, ensuring continuity in the event of technical failures or cyberattacks.

3. Ensure Compliance with Legal and Regulatory Standards

Compliance is a key motivation for maintaining strong records management practices. Different jurisdictions impose varying obligations regarding what records must be retained, how long they should be kept, and how they should be secured. For global companies, this creates a complex compliance landscape.

Some common compliance obligations include tax reporting requirements, employment law documentation, financial transparency regulations, and industry-specific mandates such as those in healthcare or finance. Data privacy laws also require businesses to safeguard personal information and provide mechanisms for individuals to access or delete their data.

This compliance landscape is constantly evolving. As a result, businesses must engage in ongoing monitoring and auditing of their practices. Regular compliance reviews and updates to policies help ensure that organizations do not fall behind on regulatory obligations. 

4. Adopt Consistent Retention and Disposal Schedules

Not all records need to be kept indefinitely. Establishing clear retention schedules determines how long different types of records should be stored before secure disposal. These schedules should be based on legal requirements, industry standards, and business needs. For instance, tax records may need to be retained for several years in most jurisdictions, while routine correspondence may be disposed of sooner.

Consistent disposal practices reduce the risks associated with holding unnecessary data, such as exposure to breaches or inefficiencies in storage. Secure disposal methods, including shredding for paper and digital wiping for electronic files, are essential to prevent sensitive information from being recovered improperly.

Global businesses must also be aware that retention periods differ significantly across countries, requiring research into the jurisdictional specifics and adapting protocols accordingly.

5. Use Technology to Support Records Management

Technology plays an important role in records management today. Electronic records management systems (ERMS) provide tools for indexing, tracking, and retrieving records quickly. Automation can also streamline tasks such as applying retention schedules, generating audit trails, and sending reminders for compliance deadlines. These tools improve efficiency while reducing the likelihood of human error.

Cybersecurity is a vital consideration here. Systems should be regularly updated to address emerging threats, and access controls should be enforced to protect sensitive records.

Benefits of Following Records Management Best Practices

Adopting strong records management practices yields significant advantages. These include:

• Efficiency improvements – Employees spend less time searching for documents and more time on productive tasks, such as tasks supporting how to build business credit quickly​. 
• Compliance risk reduction – Organizations can demonstrate adherence to laws and regulations with clear, well-documented processes. 
• Transparency enhancements – Stakeholders gain greater visibility on key data, whether they are regulators, investors, or clients. This builds trust and credibility.
• Long-term information preservation – Retaining and protecting critical business information supports better decision-making, which in turn assists strategic goal achievement.

Global Considerations for Records Management

Managing records across multiple jurisdictions introduces additional challenges. Differences in legal requirements, cultural expectations, and technological infrastructure can complicate the implementation of uniform practices. For example, data protection standards may vary widely between regions, requiring adapted policies to remain compliant everywhere that a company operates.

Uniform systems can be vital for multinational organizations. While local adjustments may be necessary, the core framework should remain consistent to avoid confusion and inefficiency. International frameworks, such as those provided by the International Organization for Standardization (ISO), can be valuable reference points for aligning policies and ensuring best practices are met worldwide.

Engaging business advisory consulting services with expertise in international compliance can also be invaluable. These specialists can help companies design systems that not only meet jurisdictional and international legal requirements but also support long-term strategic goals in global markets.

FAQs

Why are records management best practices important for businesses?

Records management best practices reduce legal and operational risks, improve efficiency, and demonstrate compliance with regulations. They also enhance transparency and preserve valuable business information for long-term use.

What is the difference between traditional and electronic records management?

Traditional records management relies on physical storage and manual processes, while electronic records management uses digital tools to automate tasks, improve accessibility, and enhance security. The latter is especially valuable for global businesses that must manage large volumes of information efficiently.

How long should records typically be retained?

Retention periods vary depending on the type of record and jurisdiction. Typically, tax records are kept for five to seven years, while certain employment or contractual records may require longer retention. Businesses must consult local regulations to determine appropriate timelines.

What are the risks of poor records management?

Poor records management exposes businesses to risks such as legal penalties for non-compliance, data breaches that compromise sensitive information, and inefficiencies that reduce productivity. It can also undermine stakeholder confidence and damage a company’s reputation.

How can global businesses ensure compliance with multiple regulations?

Global businesses can ensure compliance by developing standardized policies that are adaptable to local requirements, implementing technology to monitor compliance, and consulting international best practice guidelines. Professional advisory support can further help align operations with complex and evolving regulatory landscapes.

References

GDPR EU. (2025). What is GDPR, the EU’s new data protection law? GDPR EU. https://gdpr.eu/what-is-gdpr 

ISO. (2025). ISO/TC 46/SC 11 – Archives/records management. ISO. https://committee.iso.org/sites/tc46sc11/home/projects/published/iso-15489-records-management.html