Business Record Retention Schedule

Business Record Retention Schedule

“How long should I keep my business records and financial documents?” is a common question from entrepreneurs and established business owners alike. Even in the digital, cloud-based era we live in today, it is still a good idea to follow the ‘better safe than sorry’ approach for information storage.

The following Business Record Retention Schedule has been developed strictly as a guide only and should not be solely relied upon. Consult with your accountant and/or legal counsel prior to disposal of your business records if you are uncertain.

Retain Permanently

• Abstracts, deeds, mortgages, bills of sale and other papers pertaining to sale of real estate
• Audit reports of accountants
• Books of original entry (i.e., cash receipts and disbursements including general journal entries)
• Capital stock and bond records; ledgers, transfer registers, stubs showing issues, record of interest, coupons, options, etc.
• Cash books
• Charts of accounts
• Checks (cancelled for important payments, i.e., taxes, purchases of property, special contracts; checks should be filed with the papers pertaining to the underlying transaction) 
• Contracts and leases still in effect
• Correspondence (legal and important matters only)
• Depreciation schedules
• Employment applications for present employees (rejected employees one year)
• Financial statements (annual or end-of-year; other months optional)
• General and private ledgers (also end-of-year trial balances)
• Insurance records, current accident reports, claims, policies, etc.
• Investments: security and asset acquisition records
• IRS audit reports
• Journals
• Minute books for directors and stockholders including by-laws and charters
• Property appraisals by outside appraisers
• Property records including costs, depreciation reserves, end-of-year trial balances, depreciation schedules, blueprints and plans.
• Tax returns and worksheets, revenue agents’ reports and other documents relating to determination of income tax liability.
• Titles
• Trademark registrations

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Retain for Seven (7) Years

• Accident reports and claims (settled cases)
• Accounts payable ledgers and schedules
• Accounts receivable ledgers and schedules
• Bank statements
• Cancelled checks (except important payments, see ‘retain permanently’)
• Charge tickets (encounter forms or super bills)
• Contracts and leases (expired)
• Employee personnel records (after termination)
• Expense analyses and expense distribution schedules
• Insurance policies (expired)
• Internal audit reports
• Inventories of products, materials and supplies
• Invoices to customers
• Invoices from vendors
• Notes and receivable ledgers and schedules
• Option records (expired)
• Payroll records and summaries including payments to pensioners
• Petty cash vouchers
• Plant cost ledgers
• Purchase orders (purchasing department copy)
• Royalty statements or computations
• Sales records
• Savings bond registration records of employees
• Scrap and salvage records
• Stock and bond certificates (cancelled)
• Subsidiary ledgers
• Time books
• Voucher registers and schedules
• Vouchers for payments to vendors, employees, etc. (includes allowances and reimbursement for travel and entertainment expenses)

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Retain for Three (3) Years

• Correspondence (general)
• Employee personnel records (after termination)
• Employment applications
• Insurance policies (expired)
• Internal reports (miscellaneous)
• Physical inventory documentation

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Retain for One (1) Year

• Bank reconciliations
• Correspondence (routine, with customers or vendors)
• Duplicate deposit slips
• Purchase orders (except purchasing department copy)
• Receiving sheets
• Requisitions
• Stockroom withdrawal forms

There are some records you want to keep even if you no longer engage with that business or vendor. Insurance is one of those.