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?

IRS website on:  How long to keep records?