Records Retention
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 ledger | Permanent |
Inventory records | 7 years (Permanent for LIFO system) |
Loan payment schedules | 7 years |
Purchase orders (1 copy) | 7 years |
Sales records | 7 years |
Tax returns | 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 |
Corporate Records | Retention Period |
---|---|
Board minutes | Permanent |
Bylaws | Permanent |
Business licenses | Permanent |
Contracts - major | Permanent |
Contracts - minor | Life + 4 years |
Insurance policies | Life + 3 years (Check with your agent. Liability for prior years can vary.) |
Leases/mortgages | Permanent |
Patents/trademarks | Permanent |
Shareholder records | Permanent |
Stock registers | Permanent |
Stock transactions | Permanent |
Employee Records | Retention Period |
---|---|
Benefit plans | Permanent |
Employee files (ex-employees) | 7 years (Or statute of limitations for employee lawsuits) |
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 |