Records Retention Recommendations
Need to know how long to hang onto that important document? Here is our list of documents and recommended retention periods. Business documents are an important history of your business's transactions with customers, vendors, creditors and employees. These records should be maintained and available to resolve questions that may arise in the future. Your business records should be easily accessible to authorized personnel in your business.
Your business records should be maintained in accordance with the below recommended periods. Certain circumstances involving pending or potential litigation may require an extension of time for record retention. Your legal counsel should be consulted prior to discarding documents that may be subject to an extended retention period.
Special retention requirements may apply to documents or information maintained on computer systems. The Internal Revenue Service has special computer retrieval requirements when business records are maintained on a computerized system. You should consult with your tax adviser regarding any applicable IRS requirements.
| Type of Record | Retention Period |
|---|---|
| Accident reports & claims | 7 years |
| Accounts payable ledgers | 7 years |
| Accounts receivable ledger | 7 years |
| Audit* reports | Permanent |
| Bank reconciliations | 1 year |
| Bank statements | 7 years |
| Canceled checks- important | Permanent |
| Canceled checks- other | 1 year |
| Capital stock and bond records | Permanent |
| Cash books | Permanent |
| Charts of accounts | Permanent |
| Contracts & leases-expired | 7 years |
| Contracts & leases in effect | Permanent |
| Correspondence-customers & vendors | 1 year |
| Correspondence-general | 3 years |
| Correspondence-legal | Permanent |
| Deeds, mortgages and bills of sale | Permanent |
| Depreciation schedules | Permanent |
| Duplicate deposit slips | 3 years |
| Employee personnel records after termination | 3 years |
| Employee benefit plan records | 7 years |
| Employment applications | 3 years |
| Expense analysis & distribution schedules | 7 years |
| Financial statements-year end | Permanent |
| Financial statements-other | 7 years |
| General ledgers & trial balances-year end | Permanent |
| Inherited property records & valuations | Permanent |
| Insurance policies-expired | 3 years |
| Type of Record | Retention Period |
|---|---|
| Insurance records | Permanent |
| Insurance audit reports | Permanent |
| Internal reports | Permanent |
| Inventory records | 3 years |
| Invoices to customers | 7 years |
| Invoices from vendors | 7 years |
| Journals | Permanent |
| Low-income housing records | 7 years |
| Minute books of directors & stockholders | Permanent |
| Notes receivable ledgers | 7 years |
| Option records | 7 years |
| Payroll records | 7 years |
| Petty cash vouchers | 3 years |
| Physical inventory tags | 3 years |
| Property appraisals | Permanent |
| Property records | Permanent |
| Purchase orders | 7 years |
| Receiving sheets | 3 years |
| Requisitions | 1 year |
| Sales records | 7 years |
| Savings bond records-employees | 3 years |
| Scrap & salvage records | 7 years |
| Stock room withdrawal forms | 1 year |
| Subsidiary ledgers | 7 years |
| Tax returns, worksheets & revenue agents' reports | Permanent |
| Time books | 7 years |
| Trade mark registrations | Permanent |
| Voucher registers | 7 years |