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Nicholas
P. DiNatale, CPA -
Certified Public Accounting & Business Advisory
Business
Resources -
FAQ
How long
do I keep my business records?
Most businesses
will want to maintain business and tax records in the event of a tax audit.
Of course there are other reasons, such as when dealing with the bank,
or for other long-term research. Also visit our individual taxpayer page
for answers on how long to retain your personal tax information. Before
making a final decision to retain or dispose of any specific records,
be sure to consult your tax advisor. The following is a brief guide to
assist in making decisions on how long to store your business records:
Keep Three Years:
- Applications
for employment
- Insurance
policies (period beginning after expiration date)
- Reports
of internal auditors
- Monthly
(or quarterly) internal reports such as trial balances, accounts receivable
reports, etc.
- Petty
cash account expense invoices and other transaction support
Keep Seven
Years:
- Accident
reports and claims
- Accounts
receivable and accounts payable ledgers and schedules
- Expired
contracts and leases
- Expense
analysis and expense distribution schedules
- Physical
inventory sheets and analysis
- Customer
invoices and sales records
- Notes
receivable ledgers and amortization schedules
- Expired
stock option ledgers
- Expense
invoices and purchase orders
- Canceled
stock and bond certificates
- Time sheets
and/or time cards
- Payment
vouchers, registers and schedules
Keep Indefinitely:
- Independent
accountants’ (auditors’) reports and associated financial
statements
- Check
books, bank statements, canceled checks and bank statement reconciliations
- Renewed
or renewable contracts and leases
- Correspondence
with attorneys and CPAs regarding legal issues, tax positions, and other
issues
- Deeds
and titles to property, plant and equipment
- Mortgage
agreements and closing statements
- Fixed
asset listings and depreciation schedules
- Quarterly
trial balances, adjusting entries and year end detailed general ledgers
- Insurance
records, accident reports and claim details
- Minute
books from Board of Director meetings and Shareholder meetings
- Independent
appraiser’s property assessments
- Personnel
files and inclusions such as signed I-9, W-4, W-9 forms, employee agreements,
401(k) withholding agreements, termination details, etc.
- Tax returns
and supporting schedules, tax preparation worksheets and calculations
- Correspondence
with tax authorities, tax audit reports and determination sheets
- Trademark,
patent and copyright registrations
- Articles
of incorporation, or organizational documentation for unincorporated
entities
- Bankruptcy
filings and related correspondences
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to Taxpayer Resources
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