Business Record Retention

Business Record Retention How Long Should You Keep Your Records?

Businesses maintain records (both paper and digital) to provide an accounting of the business activities performed by their respective organizations. Some examples of these files may be financial reports, human resource documents, tax filings, legal papers, or even just a single management report. With the rise and influx of these business records exponentially compiling every day companies are faced with an ever-increasing need to save on storage costs (both physical and digital), to be able to locate important files efficiently and to reduce compliance exposure. So where is a company to start?

One of the first questions asked when setting up an internal business records retention policy is which records should we keep? This inquiry is not always an easy one, but one that definitively needs an answer. Some business records should never be expunged and should always have a permanent file for future auditing purposes. Others will have a specified termination point in the future, and some don't easily fit into any category. For those later ones, a little bit of research may be required to determine industry, local, state, or Federal compliance laws for those weird papers.

The next question often asked is how long should I keep my records? Three, five, ten years? And what industry and compliance guidelines should apply. Many industries (law, healthcare, insurance) set their guidelines, so you'll want to check with your professional association in your state. There is a full gamut of information out there, but our hope here is to provide you with a general retention resource to get you started on your records retention journey.

Legal Requirements for Business Record Retention:

Federal, state and local compliance laws and regulations require you to retain documents for a specified number of years. And even certain document types may be subject to retention requirements by your state and local governments. Please note these suggested guidelines below are not the final authority, and they do not represent legal advice from DRS Imaging Services LLC. Additionally, there may be situations or industries that require longer periods of record retention than legally required. Contact your legal expert(s) or federal, state, or local government offices to ensure your document management procedures are in compliance with current legal requirements. The following information and links are general guidelines to get you started on your record retention policy.

Suggested Business Record Retention Guidelines:


Accounting	Suggested Retention
Accounts Payable Ledger	7 Years
Accounts Receivable Aging Reports	7 Years
Accounts Receivable Ledger	7 Years
Accounts Receivable Invoices	7 Years
Accounts Written-off	7 Years
Authorization - Accounting	5 Years
Balance Sheets	Permanent Retention
Bank Reconciliations	7 Years
Bank Statements	7 Years
Bank Deposit Slips	3 Years
Budgets	3 Years
Canceled Checks	10 Years
Cancelled Dividend Checks	Permanent Retention
Cash Book	Permanent Retention
Cash Disbursement & Receipt Record	Permanent Retention
Cash Sales Slips	7 Years
Charge Slips	7 Years
Charts of Accounts	Permanent Retention
Check Register	Permanent Retention
Expense Reports	7 Years
Financial Statements	Permanent Retention
General Ledger	Permanent Retention
Investment - Sales/Purchases	Permanent Retention
Journal Entries	Permanent Retention
Petty Cash Records	7 Years
Profit/Loss Statements	Permanent Retention
Purchase Order	7 Years
Subsidiary Ledger	Permanent Retention
Trial Balance	Permanent Retention
Vendor Invoices	7 Years
Voucher Check Copies	7 Years

Corporate Records	Suggested Retention
Amendments	Permanent Retention
Annual Reports	Permanent Retention
Articles of Incorporation	Permanent Retention
Audit Reports - Public	Permanent Retention
Audit - Internal	6 Years
Board of Directors - Committee	Permanent Retention
Board of Directors - Minute Book	Permanent Retention
Bylaws	Permanent Retention
Capital Stock Certificates	Permanent Retention

Fixed Assets	Suggested Retention
Depreciation Schedule	Permanent Retention
Inventory Records	Permanent Retention
Plans and Blueprints	Permanent Retention
Plant Cost Ledger	Permanent Retention
Property Appraisals	Permanent Retention
Property Register	Permanent Retention
Records for Property Subject to Depletion	Permanent Retention

Accounting Firms	Suggested Retention
Tax Return Preparers	4 Years
Tax Returns Prepared	4 Years

Human Resources	Suggested Retention
Accident Reports - Settled	7 Years
Attendance Records	7 Years
Dental Benefits	5 Years
Disability Benefits - After Expiration/Settlement	7 Years
Employee Medical History	7 Years
Employment Application - Not Hired	3 Years
Garnishments	5 Years
Life Insurance Benefits	5 Years
Medical Benefits	7 Years
Pension Plan Agreement	Permanent Retention
Performance Record - After Termination	7 Years
Personnel File - After Termination	7 Years
Personnel Files - Current Employees	Permanent Retention
Profit Sharing Agreement	Permanent Retention
Safety Reports	5 Years
Vacation Files	4 Years
Workers? Compensation Benefits	10 Years
Sick Pay	4 Years
Family & Medical Leave	3 Years

Insurance	Suggested Retention
Automobile Insurance Claims	10 Years
Disability Insurance Claims - After Termination	7 Years
Expired Insurance Policies	10 Years
Fire Inspection Reports	6 Years
Insurance Appraisals	6 Years
Safety Records	6 Years
Foreign Insurance Policies	3 Years

Legal	Suggested Retention
Bill of Sale	Permanent Retention
Business Permits	Permanent Retention
Claims & Litigation Concerning Torts & Breach of Contract	Permanent Retention
Contract	Permanent Retention
Contracts - Employees	Permanent Retention
Contracts - Governments	Permanent Retention
Contracts - Labor Union	Permanent Retention
Contracts - Special	Permanent Retention
Copyrights	Permanent Retention
Correspondence - Legal	Permanent Retention
Deeds & Titles	Permanent Retention
Leases/Canceled	10 Years
Licenses	Permanent Retention
Mortgages	Permanent Retention
Notes Receivable - Canceled	10 Years
Patents	Permanent Retention
Stock & Bond Record	Permanent Retention
Trademarks - Registered	Permanent Retention

Payroll	Suggested Retention
Contractors	3 years from date of completion of contract
Checks - Payroll	7 Years
Commission Reports - Salesperson	6 Years
Employee Withholding Exemption Certificates	10 Years
Payroll Register	4 Years
Payroll Records - After Termination	10 Years
Salary History	8 Years
Time Reports	7 Years
W-2 Forms	Permanent Retention
Vacation/Sick Pay	4 Years
Large Food or Beverage Establishment Reporting Tips	3 Years

Security	Suggested Retention
Classified Material Violations	Permanent Retention
Visitor Clearance	2 Years

Taxation	Suggested Retention
Tax Free Reorganization	Permanent Retention
338 Election	7 Years
Canceled Checks - Tax Payments	Permanent Retention
Correspondence - Tax	Permanent Retention
Depreciation Schedules	Permanent Retention
Income Tax Returns	Permanent Retention
Inventory Reports	Permanent Retention
FUTA/FICA/Income Tax Withholding	4 Years
Payroll Tax Returns	Permanent Retention
Revenue Agent Reports	Permanent Retention
Sales Tax Returns	Permanent Retention
Transfer Pricing	4 Years

Miscellaneous	Suggested Retention
Receiving Documents	10 Years
Title Papers	Permanent Retention
Vehicle Operating and Maintenance	2 Years
Telecommunication Copies	1 Years

Note: Documentation may include all electronic memos and files (including general ledger files, emails, digital tax files, PDF files, or any form of business record retention created and or stored electronically. All material presented is for general information use only and should not be acted upon without professional advice and assistance.

Within the organized chaos of establishing an effective business record retention policy, there is opportunity to organize, analyze and conquer your data.

In the midst of chaos, there is also opportunity.? Sun Tzu

For more information on business record retention and how DRS Imaging can customize the perfect solution for your document management needs, please contact us at 1-800-991-3704 at your convenience or fill out a short form to have one of our agents connect with you.

Business Record Retention

Legal Requirements for Business Record Retention:

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