Record Retention Guide

 

We are often asked how long to keep records on file.

Keeping records too long can waste precious space and resources, however, your files should be kept until all regulatory and legal requirements are met. Shredding records too early can pose a wide variety of potential legal and tax problems. To be safe, use the following guidelines for both business & personal recordkeeping:

 

Business Documents

From the date of filing, keep for:

    • Correspondence with Customers and Vendors

    • Duplicate Deposit Slips

    • Purchase Orders (other than Purchasing Department copy)

    • Receiving Sheets

    • Requisitions

    • Employee Personnel Records (after termination)

    • Employment Applications

    • Expired Insurance Policies

    • General Correspondence

    • Internal Audit Reports

    • Internal Reports

    • Petty Cash Vouchers

    • Physical Inventory Tags

    • Savings Bond Registration Records of Employees

    • Employee Time Cards

    • Accident Reports, Claims

    • Accounts Payable Ledgers and Schedules

    • Accounts Receivable Ledgers and Schedules

    • Bank Statements and Reconciliations

    • Cancelled Checks

    • Cancelled Stock and Bond Certificates

    • Employment Tax Records

    • Expense Analysis and Expense Distribution Schedules

    • Expired Contracts, Leases

    • Expired Option Records

    • Inventories of Products, Materials, Supplies

    • Invoices to Customers

    • Notes Receivable Ledgers, Schedules

    • Payroll Records and Summaries, including payment to pensioners

    • Plant Cost Ledgers

    • Purchasing Department Copies of Purchase Orders

    • Sales Records

    • Subsidiary Ledgers

    • Time Books

    • Travel and Entertainment Records

    • Vouchers for Payments to Vendors, Employees, etc.

    • Voucher Register, Schedules

  • While federal guidelines do not require you to keep tax records "forever," in many cases there will be other reasons you'll want to retain these documents indefinitely.

    • Audit Reports from CPAs/Accountants

    • Cancelled Checks for Important Payments (especially tax payments)

    • Cash Books, Charts of Accounts

    • Contracts, Leases Currently in Effect

    • Corporate Documents (incorporation, charter, by-laws, etc.)

    • Documents substantiating fixed asset additions

    • Deeds

    • Depreciation Schedules

    • Financial Statements (Year End)

    • General and Private Ledgers, Year End Trial Balances

    • Insurance Records, Current Accident Reports, Claims, Policies

    • Investment Trade Confirmations

    • IRS Revenue Agents' Reports

    • Journals

    • Legal Records, Correspondence and Other Important Matters

    • Minute Books of Directors and Stockholders

    • Mortgages, Bills of Sale

    • Property Appraisals by Outside Appraisers

    • Property Records

    • Retirement and Pension Records

    • Tax Returns and Worksheets

    • Trademark and Patent Registrations

Personal Documents

From the date of filing, keep for:

    • Bank Statements

    • Paycheck Stubs (reconcile with W-2)

    • Canceled checks

    • Monthly and quarterly mutual fund and retirement contribution statements (reconcile with year end statement)

    • Credit Card Statements

    • Medical Bills (in case of insurance disputes)

    • Utility Records

    • Expired Insurance Policies

    • 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

    • CPA Audit Reports

    • Legal Records

    • Important Correspondence

    • Income Tax Returns

    • Income Tax Payment Checks

    • Investment Trade Confirmations

    • Retirement and Pension Records