Accounting Resources

Helpful links, forms, record retention guidelines and more.

Simplify Your Payroll

Simplify your payroll with our online payroll service that enables you to manage your business from anywhere. This service includes comprehensive tax management, free direct deposit, check printing, payroll reports, employee benefit reports, HR resources, and more!

Record Retention Guidelines

Record Retention for Individuals

Good record keeping can reduce your taxes and make your financial life easier. How long to keep records is a combination of judgment and state and federal statutes of limitations. Since federal tax returns can generally be audited for up to three years after filing and up to six years if the IRS suspects underreported income, it’s wise to keep tax records at least 7 years after a return is filed. Requirements for records kept electronically are the same as for paper records. Generally, you can follow these recommended retention periods for the following documents.

  • Tax returns (uncomplicated) - 7 years

    Tax returns (all others) - Permanent

    W-2s - 7 years

    1099s - 7 years

    Bank statements - 7 years

    Cancelled or substitute checks supporting tax deductions - 7 years

    Charitable contribution records - 7 years

    Credit card statements - 7 years

    Dividend reinvestment records - Ownership period + 7 years

    Divorce documents - Permanent

    Estate planning documents - Permanent

    Home purchase & improvement documents - Ownership period + 7 years

    Home repair receipts - Warranty period for item

    Insurance policies - Life of policy + 3 years (Check with your agent. Liability for prior years can vary.)

    Investment purchase & sales documents - Ownership period + 7 years

    IRA annual reports - Permanent

    IRA nondeductible contributions Form 8606 - Permanent

    Loans - Term of loan + 7 years

    Mutual fund annual statements - Ownership period + 7 years

    Receipts, diaries, logs pertaining to tax return - 7 years

    Retirement plan annual reports - Permanent

    Year-end brokerage statements - Ownership period + 7 years

 

Record Retention for Businesses

In business, good record keeping is essential not only for tax reporting purposes but also for the success of the company. The guidelines below give general retention periods for the most common business records. Don’t hesitate to contact us if you’d like more information or assistance with your record retention program.

  • Accounts payable - 7 years

    Accounts receivable - 7 years

    Audit and financial statements - Permanent

    Chart of accounts - Permanent

    Depreciation schedules - Permanent

    Expense records - 7 years

    Financial statements (annual) - Permanent

    Fixed asset purchases - Permanent

    Garnishment records - Permanent

    General ledger - Permanent

    Inventory records - 7 years (Permanent for LIFO system)

    Loan payment schedules - 7 years

    Payroll tax returns - 7 years

    Purchase orders - 7 years

    Sales records - 7 years

    Tax returns - Permanent

  • Bank reconciliations - 2 years

    Bank statements - 7 years

    Cancelled or substitute checks - 7 years (Permanent for real estate purchases)

    Electronic payment records - 7 years

  • Annual reports to Secretary of State/Attorney General - Permanent

    Articles of Incorporation - Permanent

    Board meeting and board committee minutes - Permanent

    Board policies and resolutions - Permanent

    Business licenses - Permanent

    Bylaws - Permanent

    Contracts major - Permanent

    Contracts minor - Life + 4 years

    Insurance policies - Life + 3 years (Check with your agent. Liability for prior years can vary)

    IRS Application for tax exempt status - Permanent

    IRS determination letter - Permanent

    Leases/mortgages - Permanent

    Patents/trademarks - Permanent

    Shareholder records - Permanent

    State sales tax exemption letter - Permanent

    Stock registers - Permanent

    Stock transactions - Permanent

  • Accident reports and Worker’s Compensation records - 5 years

    Benefit plans - Permanent

    Employee files (ex-employees) - 7 years (Or statute of limitations for employee lawsuits)

    Employment applications - 3 years

    Employment taxes - 7 years

    I-9 forms - Employment period + 3 years

    Payroll records - 7 years

    Pension/profit sharing plans - Permanent

    Time cards - 3 years

  • Appraisals - Permanent

    Construction records - Permanent

    Leasehold improvements - Permanent

    Lease payment records - Life + 4 years

    Real estate purchases - Permanent