Record Retention Schedule
The table below shows a recommended retention schedule for some of the more common business records.
Retention period = current year plus
Accounting Records:
Accounts Payable.……………………………………… 10 Years (3 in office, 7 in storage)
Vendors’ invoices and petty cash slips………………………. 7 Years
Voucher Check copies…………………………………………... 7 Years
Accounts Receivable…………………………………… 10 Years (3 in office, 7 in storage)
Bill Drafts…………………………………………………………. 7 Years
Customer/Client Invoices……………………………………….. 7 Years
Interoffice Customer/Client Charges…………………………… 7 Years
Other Charges to Clients’ voucher…………………………….. 7 Years
Analysis of Billing Adjustments………………………………. 7 Years
Daily cash reports and remittance advices…………………… 1 Year
Billed Accounts Receivable Aged Trail Balance…………….. 7 Years
Unbilled Receivable Ledgers…………………………………… 7 Years
Customer/Vendor/Client data entry forms…………………….. 1 Year
Audit Reports…………………………………………………….. Indefinitely
Chart of Accounts.……………………………………………….. Indefinitely
Depreciation Schedules.………………………………………….. Indefinitely
Data Transmittal (in central processing system)………………. 7 Years
Expense Records.………………………………………………… 7 Years
Financial Statements and work papers (annual).……………… Indefinitely
Financial Statements and work papers (monthly/interim)……. 7 Years
Fixed Asset Purchases.……………………………..…………… Indefinitely
General Ledger.…………………………………………………… Indefinitely
Cash Receipts and Disbursements Journals…………………… Indefinitely
Journal Vouchers…………………………………………………. Indefinitely
Inventory Records.……………………………………… 7 Years (Indefinitely for LIFO system)
Equipment Records……………………………………………….. 5 Years (after disposition)
Loan Payment Schedules.………………………………………… 7 Years
Purchase Orders (1 copy)………………………………………… 7 Years
Sales Records……………………………………………………… 7 Years
Correspondence…………………………………………………... 1 Year
Tax Returns.………………………………………………………. Indefinitely
Bank Records:'.
Bank Statements.………………………………………………….. 7 Years
Canceled Checks, Bank Statements, Deposit Slips….. 10 Years (3 in office, 7 in storage)
(Indefinitely for R E Purchases)
Loan Records……………………………………………. 7 Years (From date of last payment)
Electronic Payment Records………………………………………. 7 Years
Corporate Records:
Board Minutes.……………………………………………………. Indefinitely
Bylaws.……………………………………………………………. Indefinitely
Business Licenses.………………………………………………… Indefinitely
Contracts - Major.………………………………………………… Indefinitely
Contracts - Minor.………………………………………………… Life + 4 Years
Insurance Policies.………………………………………………… Life + 3 Years
Accident Reports and Claims……………………………. 6 Years (after accident or settlement)
Leases / Mortgages……………………………………………….. Indefinitely
Patents / Trademarks……………………………………………… Indefinitely
Shareholder Records……………………………………………… Indefinitely
Stock Registers…………………………………………………… Indefinitely
Stock Transactions……………………………………………….. Indefinitely
Employee Records:
Employment Applications (for personnel not hired)………….. 3 Years
Employment Taxes.……………………………………………….. 7 Years
Employee Time Reports and attendance records……..………. 7 Years
Employee Time Analyses………………………………………… 7 Years
Payroll data and authorization…………………………………… 7 Years
Payroll Records (journals, ledgers, W-2, 940’s, 942’s, etc.) .…. Indefinitely
Pension / Profit Sharing Plans……………………………………. Indefinitely
Benefit Plans.…………………………………………………….. Indefinitely
Employee Files (ex-employees).……………… 7 Years /Employee lawsuits statute of limitations
Pre-Employment applications, resumes, tests, advertisements.. 7 Years (after termination)
Salary rates and changes………………………………………… 3 Years (after termination)
Performance reviews……………………………………………… 7 years (after termination)
Promotion, demotion, layoff, discharge………………………… 7 Years (after completion)
Counseling records……………………………………………….. 7 Years (after termination)
Disability benefits………………………………………………… 6 Years (after expiration/settlement)
Discrimination charges…………………………………………… 4 Years (after settlement)
Education, training and CPE records……………………………. 7 Years (after termination)
Employee contracts………………………………………………. 7 Years (after termination)
Employee medical history……………………………………….. 6 Years (after termination)
INS I-9 forms (per Immigration Reform & Control Act)………. 3 Years from date of filing
or 1 Year after termination
whichever is longer
Real Property Records:
Construction Records.…………………………………………..… Indefinitely
Leasehold Improvements.………………………………………… Indefinitely
Lease Payment Records.………………………………………….. Life + 4 Years
Real Estate Purchases…………………………………………….. Indefinitely
Other Property Records (blueprints, appraisals, permits)…….. Indefinitely
Other Administrative Records:
Legal Correspondence…………………………………………… Indefinitely
Warranties and service agreements…………………………….. 1 Year (after expiration)
Users Manuals……………………………………………………. Until disposition of equipment
Interoffice correspondence……………………………………… 7 Years
New business reports……………………………………………. 7 Years
Bulletins to customers/clients, executives and staff………….. 7 Years
Company/firm publications, brochures, newsletters………….. 7 Years
Sources:
SWARTZ RETSON, a Professional Corporation -------------------- February 9, 1996
Any questions? Please call (219) 769-3616 or email to rswartz@pla-net.net
Practicing CPA ------------------------------------------------------ March 1995
as edited by Precision Payroll of Illinois, LLC -- 630-887-9090