Record Retention Schedule and Record Storage

By: Annamarie DePrey, Staff Accountant

The beginning of each year is a perfect time to review the record retention schedule for both business and personal accounting records.  Clients must make sure they follow guidelines to assure they don’t encounter legal or tax problems.

I have created a guide of most frequently asked for record retention:

Type of Record                                                                   Retention Period

Accounts Payable Ledgers & Schedules                         7 years

Accounts Receivable Ledgers & 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 & summaries                                         7 years

Personnel files (terminated)                                          7 years

Stocks & bonds certificates (canceled)                         7 years

Tax returns & worksheets, revenue agents’

  reports, & other documents relating to

  determination of income tax liability                          Permanently

Time books/cards                                                              7 years

Training Manuals                                                               Permanently

For help with retaining the records for your business, contact us today. We would be happy to assist you.