We are independent & ad-supported. We may earn a commission for purchases made through our links.
Advertiser Disclosure
Our website is an independent, advertising-supported platform. We provide our content free of charge to our readers, and to keep it that way, we rely on revenue generated through advertisements and affiliate partnerships. This means that when you click on certain links on our site and make a purchase, we may earn a commission. Learn more.
How We Make Money
We sustain our operations through affiliate commissions and advertising. If you click on an affiliate link and make a purchase, we may receive a commission from the merchant at no additional cost to you. We also display advertisements on our website, which help generate revenue to support our work and keep our content free for readers. Our editorial team operates independently of our advertising and affiliate partnerships to ensure that our content remains unbiased and focused on providing you with the best information and recommendations based on thorough research and honest evaluations. To remain transparent, we’ve provided a list of our current affiliate partners here.

What Is an Administrative Value?

By Theresa Miles
Updated May 17, 2024
Our promise to you
WiseGeek is dedicated to creating trustworthy, high-quality content that always prioritizes transparency, integrity, and inclusivity above all else. Our ensure that our content creation and review process includes rigorous fact-checking, evidence-based, and continual updates to ensure accuracy and reliability.

Our Promise to you

Founded in 2002, our company has been a trusted resource for readers seeking informative and engaging content. Our dedication to quality remains unwavering—and will never change. We follow a strict editorial policy, ensuring that our content is authored by highly qualified professionals and edited by subject matter experts. This guarantees that everything we publish is objective, accurate, and trustworthy.

Over the years, we've refined our approach to cover a wide range of topics, providing readers with reliable and practical advice to enhance their knowledge and skills. That's why millions of readers turn to us each year. Join us in celebrating the joy of learning, guided by standards you can trust.

Editorial Standards

At WiseGeek, we are committed to creating content that you can trust. Our editorial process is designed to ensure that every piece of content we publish is accurate, reliable, and informative.

Our team of experienced writers and editors follows a strict set of guidelines to ensure the highest quality content. We conduct thorough research, fact-check all information, and rely on credible sources to back up our claims. Our content is reviewed by subject-matter experts to ensure accuracy and clarity.

We believe in transparency and maintain editorial independence from our advertisers. Our team does not receive direct compensation from advertisers, allowing us to create unbiased content that prioritizes your interests.

Administrative value is the assessment of the importance of a business record to daily operations. Records deemed to have administrative value are kept on file or used regularly in conducting business. This categorization of business records drives a company's document retention policy and can have legal implications in a variety of circumstances, such as in response to a discovery request during litigation or pursuant to a tax audit.

Business records are the lifeblood of operations. The paper trail of transactions is the way a company meets its government obligations to prove compliance with the law. Businesses are required to document sales to substantiate payment of income taxes as well as records of the status of employees to prove work eligibility and to substantiate hours worked. Policies and procedures are typically committed to paper, which create a historical record of the change in policies over time.

These requirements, along with internal needs and industry standards, mean that every record a company produces must be assessed for its administrative value. A company determines if the record is something that must or should be kept for a certain length of time, or if it can be destroyed without consequences. Larger businesses will typically establish a document retention policy that helps employees determine the value of documents so that the kinds of business records that are retained are uniform throughout the company.

Smaller companies rarely design a formal document retention policy, but the determination of administrative value is no less important in a small firm environment. Inadequate record-keeping can put any company out of business. For example, a company that enters into contracts for services typically provides the client with the right to audit its records of account activity. If proper administrative records are not kept, the client can sue for a return of payments made. In a retail sales environment, the successful defense of a slip and fall lawsuit could depend on the written policies and procedures that employees received as part of their initial job training.

Administrative value also plays a role in a public context for oversight and historical purposes. The public typically has an interest in the daily operations of government officials and offices, and some countries have laws that entitle the public to access government records, such as the Freedom of Information Act in the US. An assessment of administrative value often determines what records must be kept and what can be shredded while complying with the law. Without this emphasis on the value of certain business documents, much of the transactional history of businesses, agencies, and organizations would be lost.

WiseGeek is dedicated to providing accurate and trustworthy information. We carefully select reputable sources and employ a rigorous fact-checking process to maintain the highest standards. To learn more about our commitment to accuracy, read our editorial process.
Link to Sources
Discussion Comments
WiseGeek, in your inbox

Our latest articles, guides, and more, delivered daily.

WiseGeek, in your inbox

Our latest articles, guides, and more, delivered daily.