A business record is a
document
A document is a written, drawn, presented, or memorialized representation of thought, often the manifestation of non-fictional, as well as fictional, content. The word originates from the Latin ''Documentum'', which denotes a "teaching" o ...
(hard copy or digital) that records an "act, condition, or event" related to business. Business records include meeting
minutes
Minutes, also known as minutes of meeting (abbreviation MoM), protocols or, informally, notes, are the instant written record of a meeting or hearing. They typically describe the events of the meeting and may include a list of attendees, a stat ...
,
memoranda
A memorandum ( : memoranda; abbr: memo; from the Latin ''memorandum'', "(that) which is to be remembered") is a written message that is typically used in a professional setting. Commonly abbreviated "memo," these messages are usually brief and ...
,
employment contract
An employment contract or contract of employment is a kind of contract used in labour law to attribute rights and responsibilities between parties to a bargain.
The contract is between an "employee" and an "employer". It has arisen out of the old ...
s, and
accounting source documents
Accounting, also known as accountancy, is the measurement, processing, and communication of financial and non financial information about economic entities such as businesses and corporations. Accounting, which has been called the "langua ...
.
It must be retrievable at a later date so that the business dealings can be accurately reviewed as required. Since business is dependent upon confidence and trust, not only must the record be accurate and easily retrieved, the processes surrounding its creation and retrieval must be perceived by customers and the business community to consistently deliver a full and accurate record with no gaps or additions.
Most business records have specified
retention period A retention period (associated with a retention schedule or retention program) is an aspect of records and information management (RIM) and the records life cycle that identifies the duration of time for which the information should be maintained ...
s based on legal requirements and / or internal company policies. This is important because in many countries (including the United States) many documents ''may'' be required by law to be disclosed to
government regulatory agencies or to the general public. Likewise, they ''may'' be
discoverable if the business is
sued
-
A lawsuit is a proceeding by a party or parties against another in the civil court of law. The archaic term "suit in law" is found in only a small number of laws still in effect today. The term "lawsuit" is used in reference to a civil acti ...
. Under the
business records exception
The business records exception to the U.S. hearsay rule is based on Rule 803(6) of the Federal Rules of Evidence (FRE). It is sometimes referred to as the business entry rule.
Rationale
The basic rationale for the exception is that employees a ...
in the
Federal Rules of Evidence
First adopted in 1975, the Federal Rules of Evidence codify the evidence law that applies in United States federal courts. In addition, many states in the United States have either adopted the Federal Rules of Evidence, with or without local v ...
, certain types of business records, particularly those made and kept with regularity, may be considered
admissible in court despite containing
hearsay
Hearsay evidence, in a legal forum, is testimony from an under-oath witness who is reciting an out-of-court statement, the content of which is being offered to prove the truth of the matter asserted. In most courts, hearsay evidence is inadmiss ...
.
See also
*
Records management
Records management, also known as records and information management, is an organizational function devoted to the management of information in an organization throughout its life cycle, from the time of creation or receipt to its eventual dispos ...
*
Information governance
Information governance, or IG, is the overall strategy for information at an organization. Information governance balances the risk that information presents with the value that information provides. Information governance helps with legal compl ...
*
*
Sarbanes-Oxley Act
References
Resources
ARMA International - Association of Records Managers and Administrators
AIIM - Association for Information and Image Management
Business documents
Information management
Records management
Information governance
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