RECORD RETENTION RECOMMENDATIONS
Record Retention Recommendations
Keep in mind, this information is provided as a general guideline only. If you have questions about destroying any tax or accounting records, please contact a FMD professional team member.
Accounting Records | Retention Period |
Accounts Payable | 7 Years |
Accounts Receivable | 7 Years |
Depreciation Schedules | 7 Years |
Expense Records (Receipts and Invoices) | 7 Years |
Financial Statements (annual) | Permanent |
General Ledger | 7 Years |
Inventory Records | 7 Years (Permanent for LIFO System) |
Loan Payment Schedules | 7 Years |
Purchase Orders (1 copy) | 7 Years |
Sales/Revenue Records | 7 Years |
Bank Records | Retention Period |
Bank Reconciliations | 3 Years |
Bank Statements | 7 Years |
Cancelled Checks | 7 Years (Permanent for real estate purchases) |
Electronic Payment Records | 7 Years |
Corporate Records | Retention Period |
Board Minutes | Permanent |
Bylaws | Permanent |
Business Licenses | Permanent |
Contracts – Major | Permanent |
Contracts – Minor | Life + 4 Years |
Insurance Policies | Life + # Years (Check with your agent) |
Leases/Mortgages | Permanent |
Patents/Trademarks | Permanent |
Stock Registers | Permanent |
Sales/Revenue Records | Permanent |
Stock Transactions | Permanent |
Employee Records | Retention Period |
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/Profile Sharing Plans | Permanent |
Real Property Records | Retention Period |
Real Estate Purchases (escrow documents) | Permanent |
Construction Records | Permanent |
Leasehold Improvements | Permanent |
Home Improvement Records | Permanent |
Lease Payment Records | Permanent |
Tax Returns | Retention Period |
Federal and State Returns | 7 Years |
IRS and State Tax Audit Reports | Permanent |
Tax Related Correspondence | 7 Years |
How long should I keep records?