It is important for both businesses and individuals to keep records in order to perform accounting activities. This time of year, as you are going through all of your records you might be thinking “how long do I have to keep these for?” If you want to spring clean your financial records this tax season, take a look at common record retention guidelines. The record retention guidelines below provide general guidelines for the retention of many types of records. Specific retention periods should take into account industry requirements and contractual obligations. Please contact us with any specific records retention questions at 315.424.1120 or [email protected].
INDIVIDUAL RECORDS
| Divorce documents | Permanent |
| Estate planning documents | Permanent |
| Home improvement receipts | Ownership period + 7 years |
| Home purchase documents | Ownership period + 7 years |
| Income tax returns and all supporting documents | 7 years |
| Insurance policies | Life of policy + 3 years |
| Loan documents | Term of loan + 7 years |
| Retirement plan annual reports | Permanent |
BUSINESS ACCOUNTING RECORDS
| Accounts payable | 7 years |
| Accounts receivable | 7 years |
| Audit reports | Permanent |
| Chart of accounts | Permanent |
| Depreciation schedules | Permanent |
| Expense records | 7 years |
| Financial statements (annual | Permanent |
| Fixed asset purchases | Permanent |
| General ledger | Permanent |
| Inventory records | 7 years (permanent for LIFO system) |
| Loan payment schedules | 7 years |
| Purchase orders | 7 years |
| Sales records | 7 years |
| Tax returns | Permanent |
BUSINESS BANK RECORDS
| Bank reconciliations | 2 years |
| Bank statements | 2 years |
| Cancelled checks | 7 years (permanent for real estate) |
| Electronic payment records | 7 years |
BUSINESS CORPORATE RECORDS
| Board minutes | Permanent |
| Bank statements | Permanent |
| Business licenses | Permanent |
| Bylaws | Permanent |
| Contracts – major | Permanent |
| Contracts – minor | Life + 4 years |
| Insurance policies | Life + 3 years (verify with agent) |
| Leases | Permanent |
| Mortgages | Permanent |
| Patents | Permanent |
| Shareholder records | Permanent |
| Stock registers | Permanent |
| Stock transactions | Permanent |
| Trademarks | Permanent |
BUSINESS EMPLOYEE RECORDS
| Benefit plans | Permanent |
| Employee files (former employees) | 7 years or state statute for lawsuit |
| Employment applications | 3 years |
| Employment taxes | 7 years |
| Payroll records | 7 years |
BUSINESS REAL PROPERTY RECORDS
| Construction records | Permanent |
| Lease payment records | Life + 4 years |
| Leasehold improvements | Permanent |
| Real estate purchases | Permanent |
For more information on record retention guidelines, contact Adam E. Panek, CPA, Partner at [email protected] or 315.701.6328. Grossman St. Amour CPAs PLLC has been in business for over 60 years. As a certified public accounting firm located in central New York, the firm is focused on the quality service standards that are highly regarded in the accounting profession. Grossman St. Amour CPAs provides businesses and individuals with accounting, audit, taxation, business planning and valuation, financial planning, investment consulting, and fraud examination and deterrence services. For more information about how Grossman St. Amour CPAs PLLC can be of service to you, contact [email protected], or call 315.701.6350.