In business, good recordkeeping is essential not only for tax reporting purposes, but also for the success of the company. The guidelines below give retention periods for the most common business records. Call us if you would like more information or assistance with your record retention program.
| Accounting Records |
Retention Period |
|
Accounts payable |
7 years |
|
Accounts receivable |
7 years |
|
Audit reports |
Permanent
|
|
Chart of accounts |
Permanent
|
|
Depreciation schedules |
Permanent
|
|
Expense records |
7 years
|
|
Financial statements (annual) |
Permanent
|
|
Fixed asset purchases |
Permanent
|
|
General correspondence |
3 years
|
|
General ledgers and related books |
Permanent |
|
Inventory records |
7 years (Permanent for LIFO System) |
|
Investment trade confirmations |
Permanent |
|
Loan payment schedules |
7 years |
|
Purchase orders (1 copy) |
7 years |
|
Sales records |
7 years |
|
Tax returns and related tax examination reports |
Permanent |
|
Bank Records |
Retention Period |
|
Bank statements and reconciliations |
7 years |
|
Cancelled or substitute checks |
7 years (Permanent for real estate purchases and tax payments) |
|
Electronic payment records |
7 years |
| Corporate Records |
Retention Period
|
|
Board minutes |
Permanent
|
|
Bylaws |
Permanent
|
|
Business licenses |
Permanent
|
|
Contracts - major |
Permanent
|
|
Contracts - minor |
Life + 4 Years |
|
Formation / incorporation documents |
Permanent |
|
Insurance policies |
Life + 3 years (Check with your agent. Liability for prior years can vary) |
|
Leases/mortgages |
Permanent |
|
Patents/trademarks |
Permanent
|
Shareholder records and stock transactions
|
Permanent
|
|
Shareholder/partner agreements |
Permanent |
|
Tax elections |
Permanent
|
|
Employee Records |
Retention Period |
|
Accident reports and claims |
7 years |
|
Benefit plans |
Permanent |
|
Employee files (ex-employees) |
7 years
|
|
Employment applications |
3 years |
|
Employment taxes |
7 years |
|
Payroll records |
7 years |
|
Pension/profit sharing plans |
Permanent |
| Real Property Records |
Retention Period
|
|
Apprasials |
Permanent
|
|
Construction records |
Permanent
|
|
Deeds |
Permanent
|
|
Leasehold improvements |
Permanent
|
|
Lease payment records |
Life + 4 years
|
| Real estate purchases |
Permanent
|
