Record Retention
Published January 23rd, 2007
It is important to hold on to your business records only as long as they are useful or needed to meet legal requirements. Retaining unnecessary records will soon exceed the storage space available in most businesses. Therefore, you may wish to establish a retention schedule which takes into account state and federal regulations, as well as industry standards. The retention periods shown here are intended as general guidelines only. Before destroying any business records it is advisable to seek legal counsel.
| Record Type | Retention Period | |
| Accident reports/claims (settled cases) | 7 years | |
| Accounts payable ledgers and schedules | 7 years | |
| Accounts receivable ledgers and schedules | 8 years | |
| Audit reports | Permanently | |
| Bank statements | 3 years | |
| Capital stock and bond records: ledgers, transfer registers, stubs showing issues, record of interest coupons, options, etc. | Permanently | |
| Charts of accounts | Permanently | |
| Checks (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) | Permanently | |
| Checks (canceled except those noted above) | 7 years | |
| Contracts and leases (expired) | 7 years | |
| Contracts and leases still in effect | Permanently | |
| Correspondence, general and schedules | 2 years | |
| Correspondence, legal and important matters | Permanently | |
| Correspondence, routine with customers/vendors | 2 years | |
| Deeds, mortgages and bills of sale | Permanently | |
| Depreciation schedules | Permanently | |
| Employee personal records (after termination) | 7 years | |
| Employment applications | 3 years | |
| Financial statements (year-end, other months optional) | Permanently | |
| General ledgers, year-end trial balances | Permanently | |
| Insurance records, policies, etc. | Permanently | |
| Internal audit reports (miscellaneous) | 3 years | |
| Inventory records | 7 years | |
| Invoices to customers or from vendors | 7 years | |
| IRA and Keogh plan contributions, rollovers, transfers and distribution | Permanently | |
| Minute books of directors, stockholders, bylaws and charter | Permanently | |
| Payroll records, summaries and tax returns | 7 years | |
| Petty cash vouchers | 3 years | |
| Property records, including costs, depreciation reserves, year-end trial balances, depreciation schedules, blueprints, and plans | Permanently | |
| Purchase orders | 3 years | |
| Receiving sheets | 1 year | |
| Safety records | 6 years | |
| Sales records | 7 years | |
| Stock and bond certificates (canceled) | 7 years | |
| Subsidiary ledgers | 7 years | |
| Tax returns, revenue agents’ reports, and other documents relating to determination of income tax liability | Permanently | |
| Time cards and daily reports | 7 years | |
| Trademark registrations, patents and copyrights | Permanently | |
| Voucher register and schedules | 7 years | |
| Vouchers for payments to vendors, employees, etc. (includes allowances and reimbursements of employees, officers, etc., for travel and entertainment expenses) | 7 years |
