Record Keeping 101

You (along with most Americans) have probably filed your tax return by now. So this is a good time to consider which records and files you need to keep and which ones you can shred.

The IRS website offers official publications on record retention, for example Publication 552 for individuals and Publication 583 for businesses. Most states also have websites readily accessible that provide guidelines for its record retention policies.

Below is a general list of documents you need to keep and suggestions on how long you need to keep them. Always consult your accountant or tax preparer for information and guidelines specific to your operation.

Document Suggested Retention Period

Accounts Payable Records Accounts Receivable Records Articles of Incorporation/Organization, Bylaws & Minutes Book Bank Statements. Bank Reconciliations & Deposit Slips Bills of Lading & Freight Bills Accounting Correspondence Credit & CollectionCorrespondence General Correspondence Legal & Important Matters Correspondence Deeds, Mortgages & Bills of Sale Employee Contracts, Correspondence & Personnel Records Payroll Records, Summaries, Returns & Time Cards Sales & Use Tax Returns Tax Records Tax Returns Trademarks Registrations, Patents& Copyrights Insurance Records (Accident Reports, Claims, Policies)

7 years                            7 years Permanently                             4 years 4 years Unil year-end 7 years 3 years Permanently Permanently 7 years after termination 7 years Permanently 4 to 10 years Permanently Permanently  7 years