Records Management

Last updated: August 10, 2026

What is records management?

Records management is the systematic control of an organization’s records, both digital and paper, across their entire life cycle, from creation and active use through storage and final disposal, usually to meet legal or industry requirements. A record is a document that serves as evidence of business decisions, transactions, and obligations, and once a document is declared a record, no further edits or alterations are made.

An insurance claim is an example of a record: it encompasses the claim form, statements, photographs, and other documents related to the claim. Organizations commonly use document generation software to generate, customize, edit, and produce the data-driven documents that later become records, and document management software stores and organizes those working files day to day.

What are the types of records?

Records fall into five main categories, based on their purpose and how they are stored. Some are digital, while others are physical.

• Physical records: Copies of documents on paper that take up physical space
• Electronic records: Records created and stored digitally
• Enterprise records: Documents relating to a company’s operation, such as contracts, agreements, and payroll records
• Industry records: Records that pertain to the operation of a specific industry
• Legal hold records: Mandated records required by law, such as records about compliance regulations

What are the five stages of records management?

Records management follows five stages: declaration, access control, retention, disposition, and the audit trail that proves the process was followed.

1. Declaration and registration: The record is placed in a repository and given a unique identifier so it can be tracked throughout the process.
2. Access controls: Certain users are authorized to access, retrieve, and read the record, but no one is authorized to change the record or its metadata.
3. Retention rules: Each type of record must be kept for a set period based on its legal, fiscal, administrative, or historical value and the relevant regulations.
4. Disposition: When records are no longer needed, they are destroyed or handed over to controlling legal authorities, like archives or libraries.
5. Audit trails: The final stage creates an audit trail, which provides evidence of how records were managed from declaration to disposition.

What are the benefits of records management?

Proper records management keeps storage under control, speeds up retrieval, reduces legal risk, and turns records into a knowledge base for better decisions.

• Controls what records are kept: As companies grow, they retain many electronic and physical records. Records management controls how many records are created and maintained, so storage space is not wasted.
• Improves efficiency: Retrieving and disposing of records efficiently saves time and ultimately reduces the number of necessary billable hours.
• Keeps companies compliant and minimizes litigation risk: The process helps companies adhere to regulatory requirements, and a safe, organized paper trail reduces litigation risks.
• Informs business decisions: Easily accessible records help companies make management decisions faster and with more information, building an organization’s knowledge base over time.

What are the best practices for records management?

Whatever the industry, four practices always apply: clear retention rules, accurate indexing, secure storage, and trained employees.

• Retention rules: Companies must know which records to keep and how long to keep them to ensure legal and regulatory compliance.
• Indexing and categorization: Accurately indexing and categorizing records is crucial so stakeholders know where to find the information they need.
• Secure storage: For physical records, a commercial records center that meets National Fire Protection Agency standards is recommended. Access controls, intrusion prevention, and barcode software secure digital records.
• Employee training: Everyone in the organization should know how the records management system works. Written copies of the rules and ongoing training keep records stored correctly through the appropriate processes.

How is records management different from document management?

Document management software organizes working documents that people edit, share, and version, while records management locks down the documents that serve as legal evidence. Records management security is judged by the US Department of Defense 5015.2 regulations.

Frequently asked questions about records management

Q1. What are the five main functions of records management?

The five main functions are capturing and declaring records, controlling who can access them, applying retention rules, disposing of records when their retention period ends, and maintaining an audit trail that documents the whole process.

Q2. What software is used for records management?

Common records management tools include Laserfiche, Hyland OnBase, M-Files, DocuWare, and OpenText. Most are part of broader enterprise content management platforms that also handle everyday documents.

Q3. Why is records management important?

Records management keeps organizations compliant with regulations, reduces litigation risk by preserving unaltered evidence, cuts storage and retrieval costs, and preserves institutional knowledge for future decisions.

Q4. What is a records management system (RMS)?

A records management system is the software that automates the records life cycle: it registers records, enforces access and retention rules, handles disposition, and logs every action for auditors.

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