What type of information should you choose a retention period for in Sage Accounting?

Choosing a retention period for personal information is critical in Sage Accounting due to legal and compliance reasons. Personal information, such as names, addresses, phone numbers, and other identifiable data, must be handled according to privacy regulations like GDPR or CCPA, which dictate how long such data can be stored. Organizations must establish a retention policy that allows them to keep this data only for as long as necessary for its intended purpose, after which it should be securely disposed of to protect individuals' privacy.

In contrast, while customer referrals, financial statements, and expense reports are indeed important categories of information, they typically do not carry the same level of legal obligation regarding retention periods as personal information does. For example, financial statements may need to be kept for audit purposes for a certain number of years, but the urgency to manage and dispose of personal information is more pressing due to the risk associated with data breaches and privacy laws. Hence, the focus on establishing a retention period is primarily driven by the necessity to comply with regulations surrounding personal information.