Resources: Records Retention Guide

Records Retention

Records Retention Guide

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
	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