What is Records Storage? Comparing Records Management Options

How does your business manage its records, and what is record storage anyway?

Record storage is often associated with paper records but also extends to organizing, storing, and protecting digital records. With 45% of SMBs still relying on paper records, it’s clear that many firms don’t have the knowledge or infrastructure to keep control of their records.

Offsite record storage is the meat and potatoes of streamlining efficiency and maintaining compliance with data security and privacy regulations. In today’s guide, we’ll take a deep dive into the concept of records storage and why your business must invest in document and records management.

Understanding Record Storage

Records management is part of how businesses grow. Your records should be secure, easily accessible, and shouldn’t require your team to spend hours hunting down physical and digital records. Proper records storage is at the heart of achieving these goals.

Of course, you could have a room filled with filing cabinets and external hard drives, but this isn’t how to do it. We all know employees spend too much time sending emails, but did you know that 60% of employees spend more time looking for documents?

Not only is on-site storage massively inefficient, but it’s rare for businesses to have the space or resources to have an efficient retrieval system in play. That’s why more businesses are looking at offsite records storage companies.

Businesses choose these services for more:

• Security
• Space
• Accessibility

Professional records management might cost more initially, but it’s an investment that repays itself many times over on the back end by making your business more efficient and secure.

What is Offsite Record Storage?

Offsite records storage lets your business store its physical and digital documents in a secure facility. These facilities are managed by professionals, enabling you to build the storage infrastructure that matches up with your business’s needs.

Most facilities are climate-controlled for archiving purposes and may also provide retention and document destruction services to stop the exponential growth that results in businesses having millions of unnecessary records.

It’s also designed to improve your business continuity. Even if your head office is wiped out by a natural disaster, you’ve got the peace of mind of knowing that your records are safe and can be restored quickly.

Of course, not every record storage business offers the same caliber of service. That’s why it’s crucial to do your research to ensure you get the security and accessibility your organization expects.

Records vs. Documents Storage

Records and documents are not the same thing. To compare document vs. record storage, the former pertains to the everyday documents you use, whereas record storage involves protecting critical business information and archiving for historical value.

Both are important, but documents likely have a short shelf life before being destroyed, whereas business records storage requires holding physical and digital media for years.

Benefits of Record Storage

Now we know what is record storage, it’s time to discuss why this is something you must invest in if you run a business. Contrary to popular belief, these services aren’t designed exclusively for sprawling corporations. Even small businesses benefit from using a records storage facility for critical documents.

Let’s run through the benefits of upping your efficiency, compliance, and security by claiming your very own storage place for records.

Improved Security and Confidentiality

Data security is a huge issue for businesses worldwide. Physical and digital records are vulnerable to malicious insiders and outsiders. With offsite record storage, you have a built-in security infrastructure to defend your sensitive information.

With 2023 seeing a 72% increase in data breaches compared to 2021, your security must be a priority. Some of the ways record storage facilities confront this issue include:

• Cold storage for physical devices.
• 24/7 surveillance.
• Sophisticated alarm and intruder detection systems.
• Employee vetting.
• GPS-tracked vehicles.

Many offsite storage providers also have their own offsite storage facilities to protect the integrity of any records stored from unavoidable issues like natural disasters.

Enhanced Space Management

Don’t underestimate how much space you lose by choosing to store records in your office.

Multiply this by how much paper you already have and you lose an immense amount of space. Not only does it mean less space for operations, but it also means renting a much larger than needed office space, costing thousands of dollars more annually.

Instead, why not offload your records to a specialized site for a fraction of the cost? When you examine the dollar cost, it just makes sense to make on-site storage a thing of the past.

Compliance With Legal and Regulatory Requirements

Every business has legal and regulatory requirements relating to different types of records, including what needs to be stored and how long each record must be stored. Here are just some of the record storage laws and regulations that could apply to you:

• Internal Revenue Code (IRC)
• Fair Labor Standards Act (FLSA)
• Fair Credit Reporting Act (FCRA)
• Occupational Safety and Health Act (OSHA)
• Health Insurance Portability and Accountability Act (HIPAA)
• Sarbanes-Oxley Act (SOX)
• Gramm-Leach-Bliley Act (GLBA)

Do business internationally, and you might also fall under global regulations within various jurisdictions. The most famous one is the General Data Protection Regulation (GDPR), which applies within the European Union (EU).

Offsite record storage providers define their services within the framework of the rules and regulations America’s businesses must comply with. In other words, working with a professional storage facility means compliance is a given.

Easy Retrieval and Access

Businesses of every size often struggle with sourcing specific documents on demand. Spending hours searching for a particular record is a poor way of running your business and means thousands of wasted labor hours every year.

Offsite records storage facilities don’t just store records in dark rooms. They also provide an easy means of retrieval. For example, many facilities are now investing in client portals, enabling businesses to find documents in the same way as performing a Google search.

How Record Storage Facilities Work

 

Record storage providers follow defined processes to meet the standards their clients expect. Understanding how they work enables you to see the value within them. It’s not just about the quality of the facility but the services offered and how records are managed from initial collection to retrieval and destruction. Here’s how record storage facilities work.

Collection and Cataloging

The first stage is to collect the records that need to be stored. Businesses setup an appointment to have their records collected. In the case of Corodata, we send out trained and vetted employees within secure, GPS-tracked vans to pick up anything you want to put into storage.

Once records reach their designated facility, they’re cataloged to ensure nothing is logged. Generally, this is done by following a logical storage system that makes for easy retrieval later.

Storage Methods and Environments

Different types of records have different storage needs. Physical paper storage will always differ from how digital media is stored. Services offered may include physical documents or offsite tape storage for archiving purposes.

Crucially, records are stored based on their ideal environments. Everything from paper to digital storage devices will decay over time, with temperature, humidity, and more impacting preservation periods.

Records are stored within climate-controlled environments, with each room sealed to keep out vermin, insects, and other unwanted invaders. With the correct environments, all media can be stored for generations without compromising their integrity.

Retrieval Process

Dumping documents into a self-storage locker might make for easy storage but it doesn’t help when you want to retrieve a specific document. The quality of the retrieval process goes back to the effectiveness of an offsite storage provider’s initial cataloging system.

Every provider will opt for its own retrieval system. For example, businesses may use an online dashboard to see everything stored on demand. They can then search their carefully curated catalog and select the devices or documents they want back.

Just like the collection process, documents that must be retrieved are delivered in the same secure manner back to the client, with their catalogs updated accordingly. This ensures nothing is lost in transit and there’s a constant paper trail.

Likewise, some documents may not be retrieved at all and are instead securely destroyed at the culmination of a legally defined retention period. Using state-of-the-art systems, businesses can set up schedules for the secure destruction of physical and digital media.

Ongoing Management and Audits

The greatest challenge faced by offsite storage providers is ensuring high standards over many years. Data storage regulations change constantly, and most businesses don’t keep up with the changing legal landscape.

For example, if an offsite storage provider works with government agencies, they often need specialized certifications to demonstrate they meet the high standards set for the storage of government records. Often, this means submitting to regular surprise inspections of their facilities.

At the heart of maintaining standards means regular internal auditing focusing on every aspect of the document storage lifecycle, including how documents are stored, the quality of facilities, and the employees responsible for making everything happen.

Manage Your Business’s Records Safely With Corodata

Record storage is an essential cog within every business’s document management processes. Switching to an offsite storage provider promotes business continuity, makes it easier to guarantee security, and guarantees efficiency throughout the organization’s processes.

With so many offsite storage providers, it’s tricky to decide which one is right for you. At Corodata, we’re the largest private offsite records storage brand in California. With decades of experience and commitment to the highest storage standards, we’ve served the Golden State’s business community as the go-to option for secure off-site record storage.