| Record Retention Guide for Businesses |
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 | | top of page | | | 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 | | top of page | | | 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 | | top of page | | | 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 | | top of page | | | Real Property Records | Retention Period | | Construction records | Permanent | | Leasehold improvements | Permanent | | Lease payment records | Life 4 years | | Real estate purchases | Permanent | | top of page | |
| This page was last modified on September 20, 2006 10:57 AM |
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