How long do I need to keep records?

Record Retention

In business, good record keeping 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.

Accounting Records	Retain:
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
Inventory Records (LIFO)	Permanent
Loan Payment Schedules	7 years
Purchase Orders (one copy)	7 years
Sales Records	7 years
Tax Returns	Permanent
Bank Records	Retain:
Bank Reconciliations	2 years
Bank Statements	7 years
Canceled Checks	7 years
Canceled Checks (Real Estate Purchases)	Permanent
Electronic Payment Records	7 years
Corporate Records	Retain:
Board Minutes Permanent Bylaws	Permanent
Business Licenses	Permanent
Contracts - Major	Permanent
Contracts - Minor	Life + 4 years
Insurance Policies	Life + 3 years
Leases/Mortgages	Permanent
Patents/Trademarks	Permanent
Shareholder Records	Permanent
Stock Registers	Permanent
Stock Transactions	Permanent
Employment Records	Retain:
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
Real Property Records	Retain:
Construction Records	Permanent
Leasehold Improvements	Permanent
Lease Payment Records	Life + 4 years
Real Estate Purchases	Permanent
Other Records	Retain:
Tax Returns (uncomplicated)	7 years
Tax returns (all others)	Permanent
W-2's	7 years
1099's	7 years
Cancelled Check Supporting Tax Deduction	7 years
Bank Deposit Slips	7 years
Bank Statements	7 years
Charitable Contribution Document	7 years
Receipts, Diaries, Logs pertaining Tax Return	7 years
Credit Card Statements	7 years
Retirement Plan Annual Reports	Permanent
IRA Annual Reports	Permanent
IRA Nondeductible Contributions Form 8606	Permanent
Loans	Term of Loan + 7 years
Insurance Policies	Life of Policy + 3 years
Divorce Documents	Permanent
Estate Planning Documents	Permanent
Investment Purchase and Sales Slips	Ownership Period + 7 years
Dividend Reinvestment Records	Ownership Period + 7 years
Year-End Brokerage Statements	Ownership Period + 7 years
Mutual Fund Annual Statements	Ownership Period + 7 years
Investment Property Purchase Documents	Ownership Period + 7 years
Home Purchase Documents	Ownership Period + 7 years
Home Improvements Rcpts and Cancelled Ck.	Ownership Period + 7 years
Home Repairs Receipts and Cancelled Ck.	Warranty Period for Item

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