Business Taxes: How Long To Keep Your Records & Paperwork

Updated: January 2017. Checked and verified by a California based CPA, Kentucky based CPA, and California based estate planner.

Need Record Retention Periods for Personal?

Small business financial statements can be convoluted, which makes managing them even more of a pain. I put this comprehensive guide together to make your life a little easier.

Table of Contents

RECOMMENDED RECORD RETENTION PERIODS FOR BUSINESS RECORDS

In Retention Period Order

Permanent Records

Appropriate ledger and related end of year trial balances
Cancelled checks for payment of taxes, purchase of property, and in payment of important contracts should be retained permanently with the papers in these files
Capital stock and bond records:
Ledgers, transfer registers, stubs showing issues and record of interest coupons Cash books (receipts and disbursement journals)
Deeds, mortgages, and bills of sale, contracts and leases in effect
Depreciation schedules
Employment taxes (records and returns, including withholding statements)
Financial statements – Year end (others optional)
General and private ledgers, and related end of year trial balances Insurance records (existing)
Minute books of directors and stockholders, by-laws
Patents and related papers
Property appraisals by outside appraisers
Property ledgers – including costs, depreciation reserves and end of year trial balances Tax returns and worksheets, Revenue Agent’s reports and other documents relating to determination of tax liability Trade mark registrations

One Year

Correspondence of unimportant nature with customers or vendors
Purchase orders (except purchasing department copies)
Receiving sheets
Requisitions
Stenographers’ note books Stockroom withdrawal forms

Three Years

Employment applications
General correspondence
Internal audit reports, including working papers
Miscellaneous internal reports
Petty cash vouchers
Physical inventory tags

Four Years

Insurance policies which have expired

Seven Years

Accident reports
Accounts receivable ledgers and related trial balances
Bank reconciliations
Bank statements
Canceled checks (see exception under permanent records) Contracts and leases expired
Duplicate deposit slips
Expense analyses and expense distribution schedules
Garnishments
Inventory summaries of product, materials and supplies
Invoices to customers and from vendors
Journal vouchers
Notes receivable ledgers and related trial balances
Payroll records and summaries, including payments to pensioners
Personnel files (terminated)
Purchase orders (purchasing department copies)
Sales records
Scrap salvage records
Inventories, sales, etc.
Subsidiary ledgers to the general ledger and related trial balances
Time books
Voucher register and related trial balances

RECOMMENDED RECORD RETENTION PERIODS FOR BUSINESS RECORDS

In Alphabetical Order

Accident reports	Seven Years
Accounts receivable ledgers and related trial balances	Seven Years
Appropriate ledger and related end of year trial balances	Permanent
Bank reconciliations	Seven Years
Bank statements	Seven Years
Canceled checks (see exception under permanent records)	Seven Years
Canceled checks for payment of taxes, purchase of property, and in payment of important contracts should be retained permanently with the papers in these files	Permanent
Capital stock and bond records: Ledgers, transfer registers, stubs showing issues and record of interest coupons	Permanent
Cash books (receipts and disbursement journals)	Permanent
Contracts and leases expired	Seven Years
Correspondence of unimportant nature with customers or vendors	One Year
Deeds, mortgages, and bills of sale, contracts and leases in effect	Permanent
Depreciation schedules	Permanent
Duplicate deposit slips	Seven Years
Employment applications	Three Years
Employment taxes (records and returns, including withholding statements)	Permanent
Expense analyses and expense distribution schedules	Seven Years
Financial statements – Year end (others optional)	Permanent
Garnishments	Seven Years
General and private ledgers, and related end of year trial balances	Permanent
General correspondence	Three Years
Insurance policies which have expired	Four Years
Insurance records (existing)	Permanent
Internal audit reports, including working papers	Three Years
Inventory summaries of product, materials and supplies	Seven Years
Invoices to customers and from vendors	Seven Years
Journal vouchers	Seven Years
Miscellaneous internal reports	Three Years
Minute books of directors and stockholders, by-laws	Permanent
Notes receivable ledgers and related trial balances	Seven Years
Patents and related papers	Permanent
Payroll records and summaries, including payments to pensioners	Seven Years
Personnel files (terminated)	Seven Years
Petty cash vouchers	Three Years
Physical inventory tags	Three Years
Property appraisals by outside appraisers	Permanent
Property ledgers – including costs, depreciation reserves and end of year trial balances	Permanent
Purchase orders (except purchasing department copies)	One Year
Purchase orders (purchasing department copies)	Seven Years
Receiving sheets	One Year
Requisitions	One Year
Sales records	Seven Years
Scrap salvage records – Inventories, sales, etc.	Seven Years
Stenographers’ note books	One Year
Stockroom withdrawal forms	One Year
Subsidiary ledgers to the general ledger and related trial balances	Seven Years
Tax returns and worksheets, Revenue Agent’s reports and other documents relating to determination of tax liability	Permanent
Time books	Seven Years
Trademark registrations	Permanent
Voucher register and related trial balances	Seven Years

Michael Kahn

From recipes using locally sourced ingredients and terroir-centric cooking, craft cocktails, to the latest in tech and home DIY projects, Michael yearns to share his learned and found knowledge of the world.

www.mklibrary.com

8 thoughts on “Business Taxes: How Long To Keep Your Records & Paperwork”

Rachel @MyUrbanOven

January 28, 2017 at 10:30 am

This is super helpful! I sent this to husband to read too for all our business projects we have. Thank you for sharing.
Bridget @ Antics of a Nutty Hiker

January 27, 2017 at 8:55 pm

This is so incredibly helpful! I’m currently going through all my personal files, purging stuff and will be starting on business files soon!
H.Evans

January 27, 2017 at 6:23 pm

Thank you.I am going through files to see what I can shred.
Mary

January 27, 2017 at 9:46 am

Thank you so much for posting this! Now I have all of this information in one place. Pinned!
Sarah Jean Althouse

January 27, 2017 at 6:31 am

Such a helpful list! I either seem to throw away what I need to soon, or hold on to stuff I don’t need
Rachel Quintans

January 27, 2017 at 3:05 am

Oh, man! I JUST “purged” my file cabinet and got rid of a ton of papers I thought I would not need. I’m just glad I kept all our tax returns!
Kimberly @ Berly's Kitchen

January 27, 2017 at 2:28 am

This is a lot of good information, especially since I plan on registering my food blog as an LLC. Some of the things you listed don’t apply to my particular situation, but many do. Thanks for sharing the info! I really need to get better at record keeping.