Proper record retention is crucial for surviving audits and legal disputes. Here is a general guide to retention periods.
Permanent Records
Keep these forever:
- Audit reports
- Capital stock and bond records
- Financial statements (year-end)
- General and private ledgers
- Tax returns and worksheets
- Deeds, Mortgages, and Bills of Sales
- Corporate Minutes and Bylaws
- Patents and Trademarks
Seven Years
The standard statute of limitations for many tax issues. Keep:
- Accounts receivable and payable ledgers
- Bank statements and cancelled checks
- Expense reports
- Invoices to customers and from vendors
- Inventory records
- Payroll records
Three Years
- General correspondence
- Employment applications
- Internal audit reports
- Petty cash vouchers
One Year
- Bank reconciliations
- Purchase orders
- Receiving sheets