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This oft-asked question is a tricky one for many reasons. First,
retention requirements are unique to the type of document in question.
Internal audit reports? Three years. Canceled checks? Seven years.
Year-end financial statements? Well, find a good place to store
them because you will need to retain such statements until the cows
come home (i.e. forever). Second, just knowing how long to keep
a document on hand is not enough. Applying a record retention policy
at a company site poses some logistical and human resource issues
which must be addressed. Lastly, when it comes to record management,
the IRS likes to see adherence to lawful, organized, consistent
retention policies. Therefore, our advice is to develop a record
retention policy your company can actually manage and then stick
to it.
Below you will find a listing of retention guidelines for accounting,
tax, insurance and corporate records. If you have a question about
any item on the list or one not found on the list, please feel free
to contact our offices.
Comments or questions on this article can be forwarded to info@talleynco.com.
| Accounting
& Tax Records |
Retention
(Years) |
| Accounts payable ledgers, schedules & invoices |
7 |
| Accounts receivable ledgers, schedules & invoices
|
7 |
| Audit reports, external |
Permanent |
| Audit reports, internal |
3 |
| Bank reconciliations |
3 |
| Bank statements & deposit slips |
7 |
| Bills of lading |
3 |
| Budgets and productions |
2 |
| Canceled checks, except as described below |
7 |
| Canceled checks for important matters such as purchases
of property, payment of taxes, special contracts, etc |
Permanent |
| Cash receipts & disbursements journals |
Permanent |
| Chart of accounts |
Permanent |
| Depreciation schedules |
Permanent |
| Expense analysis & distribution schedules |
7 |
| Expense reports |
7 |
| Financial statements (year-end) |
Permanent |
| General ledger & journals |
Permanent |
| Inventories |
7 |
| Invoices for nonproperty purchases |
7 |
| Invoices for property |
Permanent |
| IRS determination & approval letters |
Permanent |
| Notes receivable ledgers & schedules |
7 |
| Payroll records |
8 |
| Petty cash vouchers |
3 |
| Purchase orders, except purchasing department copy |
1 |
| Purchase orders, purchasing department copy |
7 |
| Receiving reports |
3 |
| Sales commission reports |
3 |
| Sales invoices & other sales records |
7 |
| Shipping reports |
3 |
| Subsidiary ledgers |
7 |
| Systems records |
Permanent |
| Tax returns, worksheets & other documents used
to determine tax liability |
Permanent |
| Trial balances |
7 |
| Vouchers for payments to vendors, employees, etc |
7 |
| Retirement & pension records |
Permanent |
| Stenographer’s notebooks |
1 |
| Training manuals |
Permanent |
| Union agreements |
Permanent |
| Correspondence
Records |
Retention
(Years) |
| General |
2 |
| Legal, tax & other important matters |
Permanent |
| Corporate
Records |
Retention
(Years) |
| Articles of incorporation, bylaws, charter, minute
books, etc. |
Permanent |
| Capital stock & bond records |
Permanent |
| Contracts & agreements (expired) |
7 |
| Copyrights patents & trademark registrations |
Permanent |
| Mortgages, notes & leases (expired) |
8 |
| Option records |
7 |
| Property records, including costs, appraisals, depreciation
schedules, blueprints & plans, deeds & easements, etc. |
Permanent |
| Insurance
Records |
Retention
(Years) |
| Accident reports (settled) |
6 |
| Claims (settled) |
10 |
| Fire inspection reports (settled) |
6 |
| Group disability records |
8 |
| Policies (expired) |
3 |
| Safety reports |
8 |
| Personnel
Records |
Retention
(Years) |
| Contracts (expired) |
7 |
| Disability & sick benefits |
7 |
| Garnishments |
7 |
| Personnel files (terminated) |
7 |
| Withholding tax statements |
7 |
Working for Web Record Retention Guidelines Disclosure
The retention periods contained in this schedule are our best
estimates of the minimum time a business should keep certain
documents. The actual amount of time to keep a specific document may be longer depending on the circumstances of your business or the contents of the documents. We invite your questions about retaining records and ask that you contact Talley & Company for more information about your particular situation.
This information is believed to be reliable. Its accuracy and completeness are not guaranteed; please consult Talley & Company if you have any questions.
Please keep in mind that documentation may include all electronic files and memos. This can include, but is not limited to such items as emails, tax software files, general ledger files, ".pdf" files or any other form of information retention that is created and/or stored electronically.
The retention periods here are intended as general guidelines only. Before destroying any business records, you should seek the advice of legal counsel.
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