Record Retention - Bober, Markey, Fedorovich & Company Accountants

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Record Retention Guidelines

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Record Retention Guidelines

Business documents are an important history of your business' transactions with customers, vendors, creditors, and employees. These records should be maintained and available to resolve questions that may arise in the future.

As Certified Public Accountants, we are often asked how long we would suggest that you maintain certain types of records. Your business records should be easily accessible to authorized personnel in your business. Your business records should be maintained in accordance with general guidelines set forth below. Certain circumstances involving pending or potential litigation may require an extension of time for record retention. Your legal counsel should be consulted prior to discarding documents that may be subject to an extended retention period.

Special retention requirements may apply to documents or information maintained on computer systems. According to Revenue Ruling 71-20, magnetic media type records "are required to be retained so long as the contents may become material in the administration of any internal revenue law." In general, the holding period for magnetic media is the same as the hard-copy holding period requirements.

*Type of Record*	*Retention Period*	*Type of Record*	*Retention Period*
Accident reports & claims	7 years	Accounts payable ledgers	7 years
Accounts receivable ledger	7 years	Audit reports	Permanent
Bank reconciliations	1 year	Bank statements	7 years
Canceled checks- important	Permanent	Canceled checks- other	7 years
Capital stock and bond records	Permanent	Cash books	Permanent
Charts of accounts	Permanent	Contracts & leases-expired	7 years
Contracts & leases in effect	Permanent	Correspondence-Customers & vendors	1 year
Correspondence-general	3 years	Correspondence-legal	Permanent
Deeds, mortgages and bills of sale	Permanent	Depreciation schedules	Permanent
Duplicate deposit slips	3 years	Employee personnel records after termination	3 years
Employee benefit plan records	7 years	Employment applications	3 years
Expense analysis & distribution schedules	7 years	Financial statements-year end	Permanent
Financial statements-other	7 years	General ledgers & trial balances-year end	Permanent
Inherited property records & valuations	Permanent	Insurance policies-expired	3 years
Insurance records	Permanent	Insurance audit reports	Permanent
Internal reports	3 years	Inventory records	7 years
Invoices to customers	7 years	Invoices from vendors	7 years
Journals	Permanent	Low-income housing records	7 years
Minute books of directors & stockholders	Permanent	Notes receivable ledgers	7 years
Option records	7 years	Payroll records	7 years
Petty cash vouchers	3 years	Physical inventory tags	3 years
Property appraisals	Permanent	Property records	Permanent
Purchase orders	7 years	Receiving sheets	3 years
Requisitions	1 year	Sales records	7 years
Savings bond records-employees	3 years	Scrap & salvage records	7 years
Stock room withdrawal forms	1 year	Subsidiary ledgers	7 years
Tax returns, worksheets & revenue agents' reports	Permanent	Time books	7 years
Trade mark registrations	Permanent	Voucher registers	7 years

This Web Site is designed to present accurate and authoritative general information on a broad range of tax and accounting issues. For personalized advice on matters effecting your rights under the law and/or the drafting of legal documents, you should consult a licensed attorney.

IRS Circular 230 Disclosure: To ensure compliance with U.S. Treasury rules, unless expressly stated otherwise, any U.S. tax advice contained in this Web Site is not intended or written to be used, and cannot be used, by the recipient for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code.

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			Bober, Markey, Fedorovich & Company 3421 Ridgewood Road Akron, Ohio 44333-3119 Phone: 330-762-9785, Fax: 330-762-3108 E-Mail: Info@BoberMarkey.com