Record Retention Guide for Businesses


Accounting

Bank

Corporate

Employee

Real Property

In business, good recordkeeping is essential not only for tax reporting purposes but also for the success of the company. The guidelines below give retention periods for the most common business records. Call us if you’d like more information or assistance with your record retention program.

Accounting Records Retention Period
Accounts payable 7 years
Accounts receivable 7 years
Audit reports Permanent
Chart of accounts Permanent
Depreciation schedules Permanent
Expense records 7 years
Financial statements (annual) Permanent
Fixed asset purchases Permanent
General ledger Permanent
Inventory records 7 years
(
Permanent for LIFO system)
Loan payment schedules 7 years
Purchase orders (1 copy) 7 years
Sales records 7 years
Tax returns Permanent

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Bank Records Retention Period

Bank reconciliations

2 years

Bank statements

7 years

Cancelled checks

7 years
(
Permanent for real estate purchases)

Electronic payment records

7 years

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Corporate Records

Retention Period

Board minutes

Permanent

Bylaws

Permanent

Business licenses

Permanent

Contracts – major

Permanent

Contracts – minor

Life + 4 years

Insurance policies

Life + 3 years
(
Check with your agent. Liability for prior years can vary.)

Leases/mortgages

Permanent

Patents/trademarks

Permanent

Shareholder records

Permanent

Stock registers

Permanent

Stock transactions

Permanent

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Employee Records

Retention Period

Benefit plans

Permanent

Employee files (ex-employees)

7 years
(
Or statute of limitations for employee lawsuits)

Employment applications

3 years

Employment taxes

7 years

Payroll records

7 years

Pension/profit sharing plans

Permanent

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Real Property Records

Retention Period

Construction records

Permanent

Leasehold improvements

Permanent

Lease payment records

Life + 4 years

Real estate purchases

Permanent

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