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Record 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.

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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