Every business knows the importance of good record keeping, but just how long do you need to hold onto certain documents? Maintaining adequate records of your business transactions is important for not only tax purposes, but also to serve as a safeguard against unexpected litigation down the road. Here’s an overview of proper record retention.
How long should you keep business records?
Record Type |
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 |
| 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 |
While this list provides general recommended record retention periods, certain circumstances may vary. If you have questions about your particular situation, contact our tax experts.
