Suggested Retention Period for Business Records

Special Documents

Document	Date

Compliments of nrSmith and Associates, PS
Certified Public Accountants and Financial Planners

Must Business Records
Be Kept Forever?

To help businesses decide how long to keep various records, the Washington Society of Certified Public Accountants has established guidelines for creating a records retention schedule. While one business may need to keep certain records longer than another company, these guidelines should be helpful for typical situations.

Records	Retention Period
Accident reports and claims (settled) ...........	7 years
Accounts payable ledgers/schedules ............	7 years
Accounts receivable ledgers/schedules .........	7 years
Audit reports of accountants ........................	Permanently
Bank reconciliations ....................................	1 year
Capital stock and bond records, ledgers, transfer registers, stubs showing issues, record of interest coupons, options, etc.	Permanently
Cash books ................................................	Permanently
Canceled checks (excepting as noted below) .............................................................	7 years
Canceled checks for important payments, i.e., taxes, purchases of property, special contracts, etc. (file with related papers) ..	Permanently*
Charts of accounts ......................................	Permanently
Contracts and leases (expired) ....................	7 years
Contracts and leases in effect ......................	Permanently
Correspondence (routine) with customers or vendors ................................................	1 year
Correspondence (general) ...........................	3 years
Correspondence (legal and important matters only) .....................................................	Permanently
Deeds, mortgages and bills of sale ...............	Permanently
Depreciation schedules ................................	Permanently
Duplicate deposit slips .................................	1 year
Employee personnel records (after termination) ...........................................	3 years
Employment applications .............................	3 years
Expense analysis and expense distribution schedules ..............................................	7 years
Financial statements (end-of-year, other months optional) ...................................	Permanently
General and private ledgers and end-of-year trial balances .........................................	Permanently
Insurance policies (expired) .........................	3 years
Insurance records, current accident reports, claims policies, etc. ...............................	Permanently
Internal audit reports ...................................	3 years (longer in some situations)
Internal reports (miscellaneous) ...................	3 years
Inventories of products, materials ................	7 years
Invoices to customers ..................................	7 years
Invoices from vendors .................................	7 years
Journals ......................................................	Permanently
Minute books of directors and stockholders, charter and by-laws ..............................	Permanently
Notes receivable ledgers/schedules ..............	7 years
Option records (expired) .............................	7 years
Payroll records and summaries, including payments to pensioners .........................	7 years
Petty cash vouchers ....................................	3 years
Physical inventory tags ................................	3 years
Plant cost ledgers ........................................	7 years
Property appraisals, outside appraisers ........	Permanently
Property records (including costs, depreciation reserves, blueprints and plans, end-of-year trial balances, depreciation schedules) .........................	Permanently
Purchase orders ..........................................	1 year (7 yrs, purchasing department copies)
Receiving sheets ..........................................	1 year
Requisitions ................................................	1 year
Sales records ..............................................	7 years
Savings bond registration records of employees ............................................	3 years
Scrap and salvage records (sales, inventories, etc.) ......................................................	7 years
Stenographer’s notebooks ..........................	1 year
Stock and bond certificates (canceled) ........	7 years
Stockroom withdrawal forms ......................	1 year
Subsidiary ledgers .......................................	7 years
Tax returns and worksheets, revenue agents’ reports, documents used to determine income tax liability *...............................	7 years*
Time books ................................................	7 years
Trade mark registrations ..............................	Permanently
Voucher register and schedules ...................	7 years
Vouchers for payments to vendors, employees, etc. (includes allowances and reimbursement of employees, officers, etc., for travel and entertainment expenses) ............................................	7 years

* Keep tax returns and support documents for at least three years, or up to 7 years, after filing with the IRS. Bear in mind that you can be audited by the IRS for no reason for up to three years after you have filed a tax return, or up to six years if your returns include capital gains or losses, if you own your own business or are self-employed, if you have inherited considerable sums of money or have bought and sold a lot of property.