Recordkeeping goes beyond tax issues—it's vital as a good business practice. The following guide shows how long you should retain common business records.
| 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 |
| Bank Records | Retention Period |
| Bank reconciliations | 2 years |
| Bank statements | 7 years |
| Cancelled checks | 7 years (Permanent for real estate purchases) |
| Electronic payment records | 7 years |
| Corporate Records | Retention Period |
| Board minutes | Permanent |
| Bylaws | Permanent |
| Business licenses | 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 |
| 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 |
| Real Property Records | Retention Period |
| Construction records | Permanent |
| Leasehold improvements | Permanent |
| Lease payment records | Life + 4 years |
| Real estate purchases | Permanent |
Heiser and Company will be happy to assist you with any questions about these guidelines or help in record retention for your business or household.
Quick Tip: The retention period for electronic and paper records is the same.
