Best Practices - Records Retention

Permanent File:

• Audit reports
• Cap, stock & bond records: ledger 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, etc. checks should be filed with the papers pertaining to the underlying transaction)
• Contracts, mortgages, notes & leases (While Active)
• Correspondence (legal & important matters only)
• Deeds, mortgages, and bill of sale
• Depreciation schedules
• Financial statements (year-end, other optional)
• General/private ledgers, year-end trial balance
• Insurance records, current accident reports, claims, policies, etc.
• Journals
• Minute books of directors, stockholders bylaws & charter
• Patents & related papers
• Property appraisals by outside appraisers
• Property records, including costs, depreciation, year-end trial balances, depreciation schedules, blueprints & plans
• Retirement & pension records
• Tax returns & worksheets, revenue agent’s reports, and other documents relating to determination of income tax liability
• Trademark registrations and copyrights
• Training manuals
• Union agreements

Seven Years:

• Accident reports/claims
• Accounts payable ledgers & schedules
• Accounts receivable ledgers & schedules
• Checks (cancelled-see exception above)
• Contracts, mortgages, notes & leases (expired)
• Expense analysis/expense distribution schedules
• Garnishments
• Inventories of products, materials & supplies
• Invoices (to customers, from vendors)
• Notes receivable ledgers & schedules
• Option records (expired)
• Payroll records & summaries
• Personnel files
• Plant cost ledgers
• Purchase orders
• Sales records
• Scrap & salvage records (inventories, sales, etc.)
• Stock & bond certificates (cancelled)
• Subsidiary ledgers
• Time books/cards
• Voucher register and schedules
• Vouchers for payments to vendors, employees, etc (including allowances and reimbursements of employees, officers, etc. for travel and entertainment
• Withholding tax statements

Three Years:

• Bank Statements
• Employment applications
• Insurance policies (expired)
• Internal audit reports (longer retention periods may be desired)
• Internal reports (misc.)
• Petty cash vouchers
• Physical inventory tags
• Sales commission reports

Two Years:

• Bank Reconciliations
• Correspondence (general)
• Correspondence (routine) with customers and/or vendors
• Duplicate deposit slips

One Year:

• Magnetic tape & tab cards
• Receiving sheets
• Requisitions
• Stenographers’ notebooks
• Stockroom withdrawal forms


See Also the IRS guidelines:

PDF - Individual Record Keeping

PDF - Business Record Keeping