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 give retention periods for the most common business records. Call us at (518) 456-6663 if you’d like more information or assistance with your record retention program.

Accounting Records Retention Period
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 (1 copy) 7 years
Sales records 7 years
Tax returns Permanent

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Bank Records Retention Period
Bank reconciliations 2 years
Bank statements 7 years
Cancelled or substitute checks 7 years
(Permanent for real estate purchases)
Electronic payment records 7 years

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Corporate Records Retention Period
Board minutes Permanent
Business licenses Permanent
Bylaws Permanent
Contracts – major Permanent
Contracts – minor Life + 4 years
Insurance policies Life + 3 years
(Check with your agent. Liability for prior years can vary.)
Leases/mortgages Permanent
Patents/trademarks Permanent
Shareholder records Permanent
Stock registers Permanent
Stock transactions Permanent

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Employee Records Retention Period
Benefit plans Permanent
Employee files (ex-employees) 7 years
(Or statute of limitations for employee lawsuits)
Employment applications 3 years
Employment taxes 7 years
Payroll records 7 years
Pension/profit sharing plans Permanent

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Real Property Records Retention Period
Construction records Permanent
Leasehold improvements Permanent
Lease payment records Life + 4 years
Real estate purchases Permanent

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