Records Retention ScheduleFor Businesses

It is important to hold onto your business records in case of an IRS audit or other examination. Retaining unnecessary records will soon exceed storage space available for most businesses. Therefore, you may wish to establish a retention schedule that takes into account state and federal regulations, as well as industry standards. The retention periods are intended as a general guideline only. If you have questions about destroying any tax or accounting records, please contact a Postlethwaite & Netterville professional immediately. These guidelines apply to both paper and electronically stored records.

Document Retention PeriodAccident reports/claims (settled cases)..............................................................................................7 yearsAccounts payable ledgers and schedules ...........................................................................................7 yearsAccounts receivable ledgers and schedules........................................................................................8 yearsAudit reports..............................................................................................................................PermanentlyBank statements.................................................................................................................................3 yearsCapital stock and bond records.................................................................................................PermanentlyCash books..........................................................................................................................................7 yearsCharts of accounts.....................................................................................................................PermanentlyChecks (canceled checks for important payments, special contracts, purchase of assets, payment of taxes, etc. Checks should be filed with the papers pertaining to the underlying transaction).....................................................................PermanentlyChecks (canceled except those noted above)......................................................................................7 yearsContracts and leases (expired)............................................................................................................7 yearsCorrespondence, general....................................................................................................................2 yearsCorrespondence (legal and tax related)....................................................................................PermanentlyDeeds, mortgages and bills of sale.............................................................................................PermanentlyDeposit slips........................................................................................................................................7 yearsDepreciation schedules..............................................................................................................PermanentlyEmployee personnel records (after termination)................................................................................7 yearsEmployee applications........................................................................................................................3 yearsExpense reports..................................................................................................................................7 yearsFinancial statements (year-end).................................................................................................PermanentlyGeneral ledgers, year-end trial balance.....................................................................................PermanentlyInsurance policies (expired).................................................................................................................3 yearsInsurance records, accident reports, claims, policies, etc...................................................................7 yearsInternal audit reports (miscellaneous)................................................................................................3 yearsInventory records................................................................................................................................7 yearsInvoices to customers from vendors...................................................................................................7 yearsIRA/Keogh plan contributions, rollovers, transfers, and distributions.......................................PermanentlyMinute books of directors, stockholders, bylaws and charter...................................................PermanentlyPayroll records, summaries and tax returns........................................................................................7 yearsPetty cash vouchers.............................................................................................................................3 yearsPurchase orders...................................................................................................................................3 yearsReceiving sheets...................................................................................................................................1 yearRetirement plan records............................................................................................................PermanentlySafety records......................................................................................................................................6 yearsSales records.......................................................................................................................................7 yearsTax returns, revenue agents’ reports, and other documents relating to determination of income tax liability............................................................................PermanentlyTime cards and daily reports...............................................................................................................7 yearsTrademark registration, patents and copyrights........................................................................PermanentlyTrial balances (monthly)......................................................................................................................3 yearsW-2 Forms...........................................................................................................................................7 years

Note: Guidelines for maintaining records are primarily based on a taxing authority’ statuatory power and limitations on auditing these records.

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