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Questions?
If you have questions about destroying any tax or accounting records, please contact a Somerville & Company, P.L.L.C. professional immediately at (304) 525-0301.
Record retention schedule guide for businesses
It is important to hold onto your business records in case of an IRS audit or other examination.
Retaining unnecessary records will soon exceed storage space available for most businesses. Therefore, you may wish to establish a retention schedule that takes into account state and federal regulations, as well as industry standards. The retention Periods are intended as a general guideline only.
| Accounting Records | |
|---|---|
Document |
Retention Period |
| Accounts payable | 7 yrs |
| Accounts receivable | 7 yrs |
| Audit Reports | Permanently |
| Cash books | Permanently |
| Chart of accounts | Permanently |
| Correspondence (legal and tax related) | Permanently |
| Correspondence, general | 2 yrs |
| Depreciate schedules | Permanently |
| Expense records | 7 yrs |
| Financial statements (annual) | Permanently |
| Fixed asset purchases | Permanently |
| General Ledger | Permanently |
| Internal audit reports (miscellaneous) | 3 yrs |
| Inventory records | Permanently |
| Invoices to customers or from vendors | 7 yrs |
| Loan payment schedules | 7 yrs |
| Payroll records and summaries | 7 yrs |
| Petty cash vouchers | 3 yrs |
| Physical inventory tags | 3 yrs |
| Plant cost ledgers | 7 yrs |
| Purchase orders (1 copy) | 7 yrs |
| Receiving sheets | 1 yr |
| Sales records | 7 yrs |
| Subsidiary ledgers | 7 yrs |
| Tax returns, revenue agents' reports and other documents relating to determination of income tax liability | Permanently |
| Trial Balances (monthly) | 5 yrs |
| Bank Records | |
Document |
Retention Period |
| Bank reconciliations | 2 yrs |
| Bank statements | 7 yrs |
| Canceled checks | 7 yrs |
| Deposit slips | 5 yrs |
| Electronic payment records | 7 yrs |
| Corporate Records | |
Document |
Retention Period |
| Board minutes | Permanently |
| Business licenses | Permanently |
| Bylaws | Permanently |
| Contracts – major | Permanently |
| Contracts – minor | Life + 4 yrs |
| Insurance policies | Life + 3 yrs |
| Insurance records, accident reports, claims, policies, etc. | Permanently |
| Leases / mortgages | Permanently |
| Patents / trademarks | Permanently |
| Shareholder records | Permanently |
| Stock registers | Permanently |
| Stock transactions | Permanently |
| Trade mark registrations | Permanently |
| Employee Records | |
Document |
Retention Period |
| Benefit plans | Permanently |
| Employee files (ex-employees) | 7 yrs |
| Employment applications | 3 yrs |
| Employment taxes | 7 yrs |
| Expense reports | 7 yrs |
| Payroll records, summaries and tax returns | 7 yrs |
| Pension / profit sharing plans | Permanently |
| Safety records | 6 yrs |
| Time cards and daily reports | 7 yrs |
| Real Property Records | |
Document |
Retention Period |
| Appraisals by outside appraisers | Permanently |
| Construction records | Permanently |
| Lease payment records | Life + 4 yrs |
| Leasehold improvements | Permanently |
|
Real estate purchase 1. Permanent for LIFO system 2. Permanent for real estate purchase 3. Check with your agent. Liability for prior years may vary 4. Or statute of limitations for employee lawsuits |
Permanently |
Note: Guidelines for maintaining records are based on a taxing authority's statutory power and limitations on auditing these records.
