Small businesses are legally required to keep some kinds of records, such as tax returns and supporting documents. They keep other kinds of records, such as contracts for their own information and protection. Business correspondence that was generated in preparing these records should be kept as well. This includes both letters sent through the United States mail and electronic communications, such as electronic mail (e-mail messages) and instant messaging (IM), which are sent by a computer over the Internet.
Generally, if a business is legally required to retain certain documents, then it should also retain correspondence related to those documents for the same amount of time. For example, most business must file a federal income tax every year and pay income tax. Once the business files the return, the Internal Revenue Service has three years to audit the return. The taxpayer should keep the return and the supporting documents, including correspondence used to complete the return, for at least three years. Correspondence includes any e-mail messages related to the return.
The same thing is true for other types of documents that a business should retain. If a business negotiates and signs a contract with a supplier, the business should keep documents pertaining to the contract until the contract is completed and the time has expired for any possible legal action on the contract. Pertinent documents include e-mail messages that relate to the formation and carrying-out of the contract.
Security of Electronic Communications
Electronic communications are increasingly used in business settings. People who work in the same business can quickly communicate with each other using e-mail messages. Business people can also send e-mail messages to people outside of the business, such as suppliers or customers. This method of communication presents its own challenges.
E-mail messages are sent to the receiver when the sender selects the send option in his e-mail software. The e-mail is stored on various computer systems as it makes its way from the sender to the receiver. Because there are several copies of one e-mail message, e-mail is harder to destroy than other forms of correspondence.
Messages may also be intercepted. Although interception is unlikely, there are devices and software available for this purpose. Before an e-mail message is sent, it is saved on the author's computer. If this computer is on a network, then access to the author's files may be achieved by infiltrating the network. The message may be saved on the author's computer or the network server for an indefinite period of time even if the author deletes the file.
Generally, deleting a file only destroys the file marker at the head of the file. The content of the file is not actually destroyed until the file is overwritten by another file or erased. However, commercial software programs that will erase files when the user deletes them are available. You may want to develop an e-mail policy at the network administration level. This might include permanent erasure of old e-mail messages or removal of old e-mail messages to a more secure computer or tape or storage system not accessible through the corporate network.