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'd like more information or assistance with your record retention program.

ACCOUNTING RECORDS                            RETENTION PERIOD

A/P ………………………………………………...   7 YEARS

A/R………………………………………………...    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 Ledger…………………………………….   Permanent

Inventory Records…………………………………    7 YEARS (Permanent LIFO)

Loan payment schedules ………………………….    7 YEARS

Purchase orders (1 copy)…………………………..   7 YEARS

Sales records……………………………………….   7 YEARS

Tax returns………………………………………...    Permanent

 

 

 

CORPORATE RECORDS                                RETENTION PERIOD

Board Minutes……………………………………..   Permanent

Bylaws   …………………………………………..    Permanent

Business Licenses ………………………………...    Permanent

Contracts  -  major  ………………………………..   Permanent

Contracts   -  minor ……………………………….    Permanent

Insurance policies ………………………………...    Life  + 3 Years

             (Check with your agent. Liability for prior insurance years can vary.)

Leases/mortgages …………………………………    Permanent

Patents / trademarks ………………………………    Permanent

Shareholder records ……………………………….   Permanent

Stock Registers ……………………………………   Permanent

Stock Transactions ………………………………..    Permanent

 

 

 

BANK RECORDS                                             RETENTION PERIOD

Bank Reconciliations……………………………...    2 YEARS

Bank Statements…………………………………...   7 YEARS

Cancelled or substitute checks…………………….    7 YEARS*

             (Permanent for real estate purchases)

Electronic payment records………………………..   7 YEARS

 

 

 

EMPLOYEE RECORDS                                   RETENTION PERIOD

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

Construction records ……………………………...    Permanent

Leasehold Improvements …………………………    Permanent

Lease payment records ……………………………   Life + 4 YEARS

Real Estate purchases ……………………………..   Permanent

 

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2009 BUSINESS RECORD

RETENTION GUIDE