Records Review & Retention
Another important New Year issue for dealerships is the review of old paperwork to determine what must be retained and what can be disposed of, as well as a careful review of local, state and federal guidelines prior to disposing of any paperwork.
Every dealership (or business) should have written guidelines in regard to record retention. The majority of citations issued to dealers for violating federal laws involve improper or nonexistent recordkeeping or reporting. Before disposing of any records, you should review federal, state, local and other paperwork retention requirements.
To assist in sorting through paperwork, NADA offers Management Guide LO3-E, A Dealer Guide to Federal Records Retention, which outlines federal retention requirements for seven major categories of records. Keep in mind, this list is not all-inclusive dealers should contact their CPA firms and/or attorneys to obtain its opinion in addressing state, local and other requirements.
NADA members can obtain a complete copy of A Dealer Guide to Federal Records Retention and Reporting by going to NADAs Web site at nada.org, or contact NADA Management Education at (703) 821-7227.
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