We are all guilty of it- we don’t take the time to review all of our important records on a regular basis. Before we know it we have file folders stuffed to the brim with documents from many years ago. Piles cover our desks and filing cabinets comprised of papers we are hanging onto because we aren’t sure how long we should keep them. When it comes to business and personal accounting records, there is a method to the madness. I will lay out some general guidelines below to hopefully help you keep legal and tax problems at bay.
Type of record Retention period
Accounts payable ledgers and schedules 7 years
Accounts receivable ledgers and schedules 7 years
Auditors’ report Permanently
Bank reconciliations/statements 2-3 years
Cash disbursements Permanently
Cash receipts journal Permanently
Financial statements Permanently
Fixed asset records Permanently
Employment applications 3 years
Insurance policies (expired) 3 years
Insurance records, current accident reports Permanently
Inventory listings and tags 7 years
Invoices (to customers, from vendors) 7 years
Payroll records and summaries 7 years
Personnel files (terminated) 7 years
Stocks and bonds certificates (canceled) 7 years
Tax returns and worksheets, revenue agents’
reports, other documents relating to
determination of income tax liability Permanently
Time books/cards 7 years
Training manuals Permanently
Brian E.… Continue reading
Read More »