This is a question each business owner eventually asks themselves. Usually when their storage area is overflowing and they are not sure what they can shred and what they have to keep.
I've put together this list of the most common records and when/if they can be destroyed.
If you have questions or require additional information please feel free to contact me at info@kdhbookkeeping.com
Document | How long to Keep | |
Accounts Payable ledgers and schedules | 7 years | |
Accounts Receivable ledgers and schedules | 7 years | |
Articles of Incorporation | Permanently | |
Audit Reports | Permanently | |
Bank Deposit Slips | 3 years | |
Bank Reconciliations | 1 year | |
Bank Statements | Permanently | |
Bills from Vendors | 8 years | |
Bills of Lading | 6 years | |
Brokerage Statements (Annual) | Permanently | |
Budgets | 2 years | |
Cancelled Checks | Permanently | |
Cancelled Checks for important payments (taxes, purchase of property, special contracts) | Permanently | |
Capital Stock and Bond Records | Permanently | |
Cash Books | Permanently | |
Cash Projections | 2 years | |
Contracts, mortgages, notes and leases (expired) | 7 years | |
Copyright Registration | Permanently | |
Correspondence (General) | 3 years | |
Correspondence (Legal and important matters) | Permanently | |
Correspondence with customers or vendors | 1 year | |
Credit Memos | 3 years | |
Deeds, Mortgages and bills of Sale | Permanently | |
Depreciation Schedules | Permanently | |
Duplicate Deposit Slips | 2 years | |
Employee Expense Reports | 3 years | |
Employee Payroll Records (w-2, w-4, etc) | 6 years | |
Employee Personnel Records (After termination) | 6 years | |
Employment Applications | 3 years | |
End of the Year Trial Balance | Permanently | |
Expense Analysis and expense distribution schedules | 7 years | |
Expired Insurance Policies | 6 years | |
Financial statements (end of year) | Permanently | |
Freight Bills | 4 years | |
Garnishments | 7 years | |
Insurance Records | Permanently | |
Internal Audit Reports | 3 years | |
Internal Reports | 3 years | |
Internal Work Orders | 3 years | |
Inventory Records | 7 years | |
Invoices to Customers | 8 years | |
Journals | Permanently | |
Minutes of Board of Directors Meetings | Permanently | |
Notes Receivables | 7 years | |
Option Records (expired) | 7 years | |
Patents and Related Papers | Permanently | |
Payroll Records | 8 years | |
Petty Cash Vouchers | 3 years | |
Physical Inventory Tags | 3 years | |
Productions and sales reports | 7 years | |
Property appraisals by outside appraisers | Permanently | |
Property Records (depreciation schedules, blueprints and plans) | Permanently | |
Purchase Journals | Permanently | |
Purchase Orders (all others) | 1 year | |
Purchase Orders (purchasing dept copy) | 7 years | |
Receiving Sheets | 1 year | |
Requisitions | 1 year | |
Retirement and Pension Records | Permanently | |
Sales Commission Reports | 3 years | |
Sales Records | 7 years | |
Scrap and Salvage Records | 7 years | |
Subsidiary Ledgers | 7 years | |
Tax Returns and worksheets | Permanently | |
Telephone logs/message books | 7 years | |
Timecards | 7 years | |
Trade mark Registrations | Permanently | |
Training Manuals | Permanently | |
Voucher for payments to vendors, employees, etc | 7 years | |
Voucher Register and Schedules | 7 years | |
Withholding Tax Statements | 7 years |
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