Monthly Financial Tools & Models
Knowledge Base
Record Retention Guidelines

This schedule is to be used only as a guideline. The final responsibility for deciding the length of the retention period is yours. You may want to consult your legal counsel before disposing of certain records.  

Item

Retention Period

Accident Reports / claims (settled cases)

6 years

Accounts payable ledgers & schedules

10 years

Accounts receivable ledgers & schedules

10 years

Audit reports

permanently

Bank reconciliations

2 years

Bank statements

7 years

Capital stock and bond records: ledgers, transfer registers, stubs showing issues,record of interest coupons, options, etc.

permanently

Cash books

permanently

Checks (canceled-see exception below)

10 years

Checks (canceled for important payments, i.e. taxes, purchases of property, special contracts, etc. Checks should be filed with paperwork pertaining to the underlying transaction

permanently

Contracts, mortgages, notes, and leases (expired)

0 years

Contracts, mortgages, notes, and leases (still in effect)

permanently

Correspondence (general)

1 + years

Correspondence (legal & important matters only)

permanently

Correspondence (routine) with customers and/or vendors

2 years

Data transmittal (in central processing system)

7 years

Deeds, mortgages, and bills of sale

permanently

Depreciation schedules

permanently

Duplicate deposit slips

2 years

Employment applications

(1) nonemployee
(7) after termination

Expense analyses / expense distribution schedules

7 years

Financial statements (year-end, other optional)

permanently

Garnishments

7 years

General/private ledgers, year-end trial balance

permanently

Insurance policies (expired)

3 years

Insurance records, current accident reports, claims, policies, etc.

11 years

Internal audit reports (longer retention periods may be desirable)

3 years

Internal reports (miscellaneous)

3 years

Inventories of products, materials & supplies

7 years

Invoices (to customers, from vendors)

7 years

Journals

permanently

Minute books of directors, stockholders, bylaws, and charter

permanently

Notes receivables ledgers and schedules

7 years

Option records (expired)

7 years

Patents and related papers

permanently

Payroll records (journals, ledgers, W-2s, 940s, 941s, etc.)

permanently

Payroll data & authorization

7 years

Personnel files (terminated)

7 years

Petty cash vouchers

3 years

Physical inventory tags

3 years

Property appraisals by outside appraisers

permanently

Property records, including costs, depreciation reserves, year-end trial balances, depreciation schedules, blueprints, and plans)

permanently

Purchase orders (except purchasing department copy)

1 year

Purchase orders (purchasing department copy)

7 years

Receiving sheets

1 year

Retirement and pension records

permanently

Requisitions

1 year

Sales commission reports

3 years

Sales records

7 years

Scrap and salvage records (inventories, sales, etc.)

7 years

Stock and bond certificates (canceled)

permanently

Stockroom withdrawal forms

1 year

Subsidiary ledgers

7 years

Tax returns and worksheets, revenue agents’ reports, and other documents relating to determination of income tax liability

permanently

Time books / cards

7 years

Trademark registrations and copyrights

permanently

Training manuals

permanently

Union agreements

permanently

Voucher register and schedules

7 years

Vouchers for payment to vendors, employees, etc. (includes allowances and reimbursement of employees, officers, etc., for travel & entertainment expenses

7 years

Withholding tax statements

6 years