General Guidelines For Record Retention        

Ever wondered how long you should keep copies of those old bank statements.  If you're like many of our clients, you probably keep them longer than you're actually required to.  Prolonged record retention is a costly practice. 

 

Space is wasted and an excessive amount of time is spent locating documents. Conversely, premature record destruction can lead to the loss of vital information.

We get asked about the time frame for saving business records quite a bit, so we decided to summarize it in this article.  

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Prolonged record retention is a costly practice

Its important to bear in mind that the appropriate time frame for record retention is dependent on legal, regulatory and business requirements and can vary from firm to firm. The following, however are some guidelines:

Permanent

Stock and bond records; important cancelled checks; legal documents for contracts it' effect; legal correspondence; deeds, mortgages and bills of sale; depreciation schedules; financial statements; general ledgers and special journals; insurance records (except policies); corporate minutes; corporate charter and by-laws; property appraisals and other property records; tax returns and IRS documents; CPAs' audit reports

7 Years

Accounts receivable and payable ledgers and schedules; accident reports and claims; ordinary cancelled checks; expired contracts and leases; inventory summaries; customer and vendor invoices; payroll records; purchase orders; sales records; voucher registers and underlying payment vouchers; subsidiary ledgers; plant ledgers; cancelled stock and bond certificates.

3 Years

General Correspondence; Terminated employee personnel records; expired insurance policies; internal reports; petty cash vouchers; physical inventory tags; employee savings bond registration records.

1 Year

Bank reconciliation’s; routine correspondence with customers and vendors; duplicate bank deposit slips; receiving reports; requisitions; stenographers' notebooks; stock withdrawal documents

Those who seek specific assistance in establishing record retention schedules as well as record keeping systems and procedures, are welcome to contact us.

 

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