Record Retention Guide for Businesses

In business, good recordkeeping is essential not only for tax reporting purposes but also for the success of the company. The guidelines below suggest retention periods for the most common business records.

Accounting Records

Retention Period

Accounts receivable/Accounts Payable

7 years

Audit reports

Indefinitely

Chart of Accounts

Indefinitely

Depreciation schedules

Indefinitely

Expense records

7 years

Financial statements (annual)

Indefinitely

Fixed asset purchases

Indefinitely

General ledger

Indefinitely

Inventory records (if LIFO, indefinitely)

7 years

Loan payment schedules

7 years

Purchase orders

7 years

Sales records

7 years

Income tax returns

Indefinitely

Bank Records

Bank reconciliations

2 years

Bank statements

7 years

Cancelled (paid) checks

7 years

Electronic payment records

7 years

Corporate Records

Board minutes

Indefinitely

Articles of incorporation/Bylaws

Indefinitely

Business licenses

Indefinitely

Contracts - major

Indefinitely

Contracts - minor

Life + 4 years

Insurance Policies (confirm with agent)

Life + 3 years

Leases/mortgages

Indefinitely

Patents/trademarks

Indefinitely

Shareholder records

Indefinitely

Stock registers + transactions

Indefinitely

Employee Records

Benefit plans

Indefinitely

Employee files (former employees)

7 years

Employment applications

3 years

Employment taxes

7 years

Payroll records

7 years

Pension/profit sharing plans

Indefinitely

Real Property Records

Construction records

Indefinitely

Leasehold improvements

Indefinitely

Lease payment records

Life + 4 years

Real estate purchases (including checks)

Indefinitely