Records Retention
Guidelines for Record Retention
One of the most frequently asked questions certified public accountants get from their clients is how long is it necessary to retain taxpayer records. The answer, of course, varies, dependent on the nature of the record.
We suggest following the guidelines set forth in this Business Records Retention Schedule.
Business Records Retention Schedule
| DOCUMENT/RECORD | RETAIN FOR |
| Accident Reports | 7 years |
| Accounts Payable/Receivable Ledger | 7-10 years |
| Audit Reports | Permanent |
| Bank Reconciliations | 1 year or as needed |
| Capital Stock and Bond Records | Permanent |
| Cash Books | Permanent |
| Chart of Accounts | Permanent |
| Check (canceled, routine) | 7 years |
| Check (canceled, important) | Permanent |
| Corporate Records (stock, board minutes) | Permanent |
| Contracts and Leases (expired) | 3 years |
| Contracts and Leases in effect | 7 years |
| Correspondence (general) | 3 years |
| Correspondence on Legal Matters | Permanent |
| Deeds, Mortgages, Bills of Sale | Permanent |
| Depreciation Schedules | Permanent |
| Duplicate Deposit Slips | 1 year |
| Employee Personnel Records (terminated) | 7 years |
| Employment applications | 3 years |
| Expense Analyses and Distribution Schedules | 7 years |
| Financial Statements | Permanent |
| General and Private Ledgers | Permanent |
| Insurance Policies (expired) | 3 years |
| Insurance Records, Claims, Policies | Permanent |
| Internal Audit Records | 3 years |
| Inventories | 7 years |
| Invoices | 7 years |
| Journals | Permanent |
| Notes Receivables Ledgers | 7 years |
| Option Records (expired) | 7 years |
| Payroll Record Summaries | 7 years |
| Petty Cash Vouchers/Receipts | 3 years |
| Physical Inventory Tags | 3 years |
| Plant Cost Ledger | 7 years |
| Property Appraisals | Permanent |
| Property Records | Permanent |
| Purchase Orders | 1 year |
| Purchase Orders (purchasing dept. copy) | 7 years |
| Receiving Sheets | 1 year |
| Requisitions | 1 year |
| Sales Records | 7 years |
| Savings Bond Records | 3 years |
| Scrap and Salvage Records | 7 years |
| Stenographer’s Notebooks | 1 year |
| Stock and Bond Certificates (canceled) | 7 years |
| Subsidiary Ledgers | 7 years |
| Tax Returns (1 copy) and Worksheets, Permanent, Time Books | 7 years |
| Trade Mark Registrations | Permanent |
| Voucher Register/Schedules | 7 years |
| Vouchers for Payments to Vendors and Employees | 7 years |
Please keep in mind that the above are only guidelines for most situations. Please contact us for guidance with specific records retention questions.