How to Control Documents More Effectively

by Grace Ferguson

Documents in a small business environment include internal and external written procedures, process descriptions, policies and blank forms. Without proper control, documents are difficult to locate, resulting in a chaotic work environment. To ensure a smooth operation, take the necessary steps to strengthen document control.

Staff Designation

Although your business is small, you probably have multiple departments, such as accounting, human resources, customer service and marketing. Each department performs its own tasks that require their own documentation. The key to maintaining a streamlined document system is to designate specific employees for the task. Instead of each employee within the department filing their own hard copy documents, designate one employee to whom those documents should be routed. Make all employees responsible for using the correct documents and the department manager responsible for the endorsing the documents under their control. If your business is not departmentalized, hire a file clerk or add the responsibility to an existing employee’s tasks.

Document Coding

By giving each document an identification code, the document is unique to its purpose and department. You can generate your own abbreviated codes, provided the codes cohesively explain the necessary information. For example, blank 2012 W-4 forms for federal income tax withholding purposes may be coded as W-4/2012/Payroll. This shows the type of form, its effective year and the related department. Write this code on the file folder that contains the blank forms. Further, the marketing department’s advertisement strategies for the first quarter of 2012 may be coded as ADV/Jan-Mar 2012/Mktg. Include this code on the bottom left side of the page and on the file folder that contains the document.

Electronic Control

The key to controlling electronic and paper documents effectively is to ensure that current documents are accessible and used and obsolete documents are properly archived. To accomplish this, place electronic documents in designated areas of the computer system according to their purpose. For example, employing new workers requires the completion of specific regulatory forms, such as Form I-9 for employment eligibility verification and federal and state tax forms. In this case, keep the necessary blank forms in a specific folder that is accessible to the hiring staff. You may also create a different file for internal policies, such as company handbook and employee benefits. Create archive files for obsolete policies and label them accordingly.

Paper Control

In the presence of an electronic filing system, it’s still a good idea to have a paper method, which increases the reliability of the overall system. For example, if you use HR software, which stores employees’ personnel records, create hard copy files for all employees as well and store them in a confidential location. Maintain a separate filing cabinet or drawer for terminated workers. Paper files are handy if you’re having system problems and need to access data on the spot. For example, the Internal Revenue Service and the U.S. Department of Labor conduct payroll audits. If you are subjected to one, you would likely be required to produce documents showing wages paid and taxes withheld for each employee within a specific period. By printing and properly filing payroll registers for each pay period, you can competently access this information.


For proper control of regulatory documents, stay abreast of the respective agency’s criteria. For example, the U.S. Department of Labor requires you to keep sales and purchase records, payroll records and employment contracts for at least three years.

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