Record Retention Guide

Establish an Electronic Backup of Your Records. Storing a backup set of important documents, such as bank statements, tax returns, insurance policies, and more, is simpler than ever. Many financial institutions now offer electronic statements, and a wealth of financial information is readily available online.        

Even if the original documents are only available in paper form, they can be scanned and converted into a digital format. Once digitized, taxpayers can save them to a backup storage device, such as an external hard drive, or burn them onto a CD or DVD (just be sure to label it). 

You may also want to consider online backup, as it is the most reliable way to ensure complete data protection. With online backup, your files are stored in a different geographic region, so even if a natural disaster like a hurricane strikes, your documents will remain secure. 

Warning: Identity theft is a significant risk in today’s world, so it's essential to take all necessary precautions to protect your personal information. Once you no longer need your tax records, financial statements, or any documents containing personal details, make sure to dispose of them securely by shredding rather than simply throwing them away in the trash. 

 Business Documents To Keep For One Year

• Correspondence with Customers and Vendors    
• Duplicate Deposit Slips    
• Purchase Orders (other than Purchasing Department copy)    
• Receiving Sheets    
• Requisitions    
• Stenographer's Notebooks    
• Stockroom Withdrawal Forms    

   Personal Documents To Keep For One Year

• Bank Statements    
• Paycheck Stubs (reconcile with W-2)    
• Canceled checks    
• Monthly and quarterly mutual fund and retirement contribution statements (reconcile with year end statement)    

 Business Documents To Keep For Three Years

• Employee Personnel Records (after termination)    
• Employment Applications    
• Expired Insurance Policies    
• General Correspondence    
• Internal Audit Reports    
• Internal Reports    
• Petty Cash Vouchers    
• Physical Inventory Tags    
• Savings Bond Registration Records of Employees    
• Time Cards For Hourly Employees      

   Personal Documents To Keep For Three Years

• Credit Card Statements    
• Medical Bills (in case of insurance disputes)    
• Utility Records    
• Expired Insurance Policies   

 Business Documents To Keep For Six Years

• Accident Reports, Claims    
• Accounts Payable Ledgers and Schedules    
• Accounts Receivable Ledgers and Schedules    
• Bank Statements and Reconciliations    
• Cancelled Checks    
• Cancelled Stock and Bond Certificates    
• Employment Tax Records    
• Expense Analysis and Expense Distribution Schedules    
• Expired Contracts, Leases    
• Expired Option Records    
• Inventories of Products, Materials, Supplies    
• Invoices to Customers    
• Notes Receivable Ledgers, Schedules    
• Payroll Records and Summaries, including payment to pensioners    
• Plant Cost Ledgers    
• Purchasing Department Copies of Purchase Orders    
• Sales Records    
• Subsidiary Ledgers    
• Time Books    
• Travel and Entertainment Records    
• Vouchers for Payments to Vendors, Employees, etc.    
• Voucher Register, Schedules        
•  *Records related to a bad debt deduction or a loss claimed for worthless securities should be kept for 7 years. 

   Personal Documents To Keep For Six Years

• Supporting Documents For Tax Returns    
• Accident Reports and Claims    
• Medical Bills (if tax-related)    
• Property Records / Improvement Receipts    
• Sales Receipts    
• Wage Garnishments    
• Other Tax-Related Bills     
•  *Records related to a bad debt deduction or a loss claimed for worthless securities should be kept for 7 years. 

 Business Documents To Keep Forever

While federal guidelines do not require you to  keep tax records "forever," in many cases there will be other reasons  you'll want to retain these documents indefinitely.

• Audit Reports from CPAs/Accountants    
• Cancelled Checks for Important Payments (especially tax payments)    
• Cash Books, Charts of Accounts    
• Contracts, Leases Currently in Effect    
• Corporate Documents (incorporation, charter, by-laws, etc.)    
• Documents substantiating fixed asset additions    
• Deeds    
• Depreciation Schedules    
• Financial Statements (Year End)    
• General and Private Ledgers, Year End Trial Balances    
• Insurance Records, Current Accident Reports, Claims, Policies    
• Investment Trade Confirmations    
• IRS Revenue Agents' Reports    
• Journals    
• Legal Records, Correspondence and Other Important Matters    
• Minute Books of Directors and Stockholders    
• Mortgages, Bills of Sale    
• Property Appraisals by Outside Appraisers    
• Property Records    
• Retirement and Pension Records    
• Tax Returns and Worksheets    
• Trademark and Patent Registrations    

   Personal Documents To Keep Forever

• CPA Audit Reports    
• Legal Records    
• Important Correspondence    
• Income Tax Returns    
• Income Tax Payment Checks    
• Investment Trade Confirmations    
• Retirement and Pension Records