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Retention Guide

We've compiled a list of the most common tax and financial records a business or individual may need to keep and guidelines for how long the records should be retained. The information in this guide is of a general nature and may not be applicable to you. Please call our office for specific guidance regarding your situation.

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Businesses

Keep One Year

  • Bank reconciliations

  • Correspondence with customers or vendors

  • Duplicate deposit slips

  • Purchase orders (except Purchasing Dept. copies)

  • Receiving sheets

  • Requisitions

  • Stockroom withdrawal forms

Keep Three Years

  • General correspondence

  • Employee personnel records (post-termination)

  • Employment applications

  • Expired insurance policies

  • Internal audit reports

  • Internal reports

  • Petty cash vouchers

  • Physical inventory tags

 

Keep Seven Years

  • Accident reports and claims

  • A/P ledgers and schedules

  • A/R ledgers and schedules

  • Cancelled checks

  • Expired contracts and leases

  • Expense analysis and distribution schedules

  • Inventory reports

  • Invoices to customers

  • Notes receivable ledgers and schedules

  • Expired option records

  • Payroll records and summaries

  • Plant cost ledgers

  • Purchasing Dept. copies of purchase orders

  • Sales records

  • Cancelled stock and bond certificates

  • Subsidiary ledgers

  • Time records

  • Voucher register and schedules

  • Voucher for payments to vendors, etc.

 

Keep Permanently

  • CPA Audit reports

  • Cash books, charts of accounts

  • Cancelled checks for important payments

  • Contracts and leases still in effect

  • Correspondence on legal and other important matters

  • Deeds

  • Mortgage and bills of sale

  • Depreciation schedules

  • Financial statements (end-of-year)

  • General ledgers and end-of-year trial balances

  • Insurance records, current accident reports, claims, policies

  • Journals

  • Minute books of directors and stockholders

  • Property appraisals by outside appraisers

  • Property records

  • Tax returns and worksheets, revenue agents' reports and other documents relating to determination of income tax liability

  • Trademark registrations

 

Individuals

Keep Three Years

  • Credit card statements

  • Medical bills (in case of insurance disputes)

  • Utility records

  • Expired insurance policies

Keep Seven Years

  • Supporting documents for tax returns

  • Accident reports and claims

  • Medical bills (if tax-related)

  • Property records/improvement receipts

  • Sales receipts

  • Wage garnishments

  • Other tax-related bills

 

Keep Permanently

  • Legal records

  • Important correspondence

  • Income tax returns

  • Income tax payment records

  • Investment trade confirmations

  • Retirement and pension records

  • Year-end mutual fund and IRA contribution statements

 

Special Circumstances

  • Car records (keep until car is sold)

  • Credit card receipts (keep until verified on your statement)

  • Mortgage, deeds and leases (keep 6 years beyond the agreement)

  • Pay stubs (keep until reconciled with your W-2)

  • Property records/improvement receipts (keep 7 years after property is sold)

  • Sales receipts (keep for life of the warranty)

  • Stock and bond records (keep 6 years beyond selling)

  • Warranties and instructions (keep for the life of the product)

  • Other bills (keep until payment is verified on the next bill)

  • Depreciation schedules and other capital asset records (keep 3 years after the tax life of the asset, or until sold - whichever is later)

 

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