Business Records Retention Guidelines
As Records Storage Industry leaders, many of our clients ask us for help in the preparation of a Retention Schedule for their files. We have prepared this guideline, but offer it only as a starting point to be confirmed and tested by your accountants and lawyers. When it comes to compliance with legislation and the possibility of an audit and/or fines, one can never be too careful or up-to-date.
BUSINESS RECORDS (KEEP FOREVER)
- income tax returns
- income tax payment checks
- investment trade confirmations
- important correspondence
- legal records
- retirement and pension records
- CPA audit reports
- annual financial statements and books of account
- corporate documents (incorporation, charter, by-laws, etc.)
- stock records
- retirement and pension records
- licenses, patents, and trademarks and registration packets
- investment trade confirmations
- documents substantiating fixed asset additions
BUSINESS RECORDS (KEEP SIX YEARS)
- bank reconciliation and cancelled checks
- canceled payroll and dividend checks
- personnel and payroll records
- purchase records
- sales records
- travel and entertainment records
- supporting documents for tax returns
- property records / improvement receipts (if tax-related)
- sales receipts (if tax-related)
- utility records (if tax-related)
- other bills (if tax-related)
BUSINESS RECORDS (KEEP THREE YEARS)
- monthly financial statements
- credit card statements (for internal use)
- employment applications (unless your profession requires longer)
- expired insurance policies
PERSONAL RECORDS (KEEP FOREVER)
- income tax returns
- income tax payment checks
- investment trade confirmations
- important correspondence
- legal records
- retirement and pension records
- CPA audit reports
PERSONAL RECORDS (KEEP SIX YEARS)
- supporting documents for tax returns
- accident reports and claims
- medical bills (if tax-related)
- property records / improvement receipts (if tax-related)
- sales receipts (if tax-related)
- utility records (if tax-related)
- other bills (if tax-related)
PERSONAL RECORDS (KEEP THREE YEARS)
- credit card statements
- medical bills (in case of insurance disputes)
- utility records (for internal use)
- expired insurance policies
SPECIAL CIRCUMSTANCES
- car records (keep until the car is sold)
- credit card receipts (keep until verified on your statement)
- insurance policies (keep for the life of the policy)
- mortgages / deeds / leases (keep 6 years beyond the agreement)
- pay stubs (keep until reconciled with your W-2)
- property records / improvement receipts (keep until property sold)
- sales receipts (keep for life of the warranty)
- stock and bond records (keep for 6 years beyond selling)
- warranties and instructions (keep for the life of the product)
- other bills (keep until payment is verified on the next bill)
