1) Record Retention Guidelines Business records, especially those that are voluminous and bulky, should be disposed of as soon as they outlive their usefulness. To help our clients determine which records they should keep and for how long, we have printed the following schedule. (This schedule is only a guide. Special circumstances can alter the retention period.) Accident reports/claims (settled case)............................... 7 years Accounts payable ledgers and schedules.......................... 7 years Accounts receivable ledgers and schedules....................... 7 years Audit reports of accountants......................................Permanently Bank reconciliations....................................................... 7 years Bank statements............................................................. 7 years Capital stock and bond records: ledgers, transfer registers, stubs showing issues, record of interest coupons, options, etc...............................................Permanently Cash books.............................................................Permanently Charts of accounts...................................................Permanently Checks (canceled – see exception below)......................... 7 years Checks (canceled for important payments, i.e. taxes, purchases of property, special contracts, etc. Checks should be filled with the papers pertaining to the underlying transaction)..................Permanently Contracts, mortgages, notes, and leases (expired).................................................................... 7 years (still in effect)........................................................Permanently Correspondence (general)............................................... 2 years Correspondence (legal and important matters only)........................................................Permanently Correspondence (routine) with customers and/or vendors........................................... 2 years Deeds, mortgages, and bills of sale...........................Permanently Depreciation schedules.............................................Permanently Duplicate deposit slips.................................................... 2 years Employee/Personnel files (terminated).............................. 7 years Employment applications................................................ 3 years Expense analyses/expense distribution schedules.............. 7 years Financial statements (year-end, other optional).............Permanently Garnishments................................................................ 7 years General/Private ledgers, year-end trial balance...........Permanently Gifts, record of gifts.................................................Permanently Insurance policies (expired)............................................. 3 years Insurance records, current accident reports, claims, policies, etc...............................................Permanently Internal audit reports (longer retention periods may be desirable)........................................... 3 years Internal reports (miscellaneous)........................................ 3 years Inventories of products, materials, and supplies................. 7 years Invoices (to customers, from vendors)................................ 7 years Journals..................................................................Permanently Minute books of directors, stockholders, bylaws, and charter..........................................................Permanently Notes receivable ledgers and schedules........................... 7 years Options records (expired)............................................... 7 years OSHA records............................................................... 6 years Patents and related papers........................................Permanently Payroll records and summaries........................................ 7 years Petty cash vouchers........................................................ 3 years Physical inventory tags................................................... 3 years Plant cost ledgers........................................................... 7 years Property appraisals by outside appraisers...................Permanently Property records, including costs, depreciation reserves, year-end trial balances, depreciation schedules, blueprints, and plans.............................Permanently Purchase orders (except purchasing department copy)......................................................... 1 year Purchase orders (purchasing department copy).................. 7 years Receiving sheets............................................................. 1 year Retirement and pension records.................................Permanently Requisitions.................................................................... 1 year Sales commission reports................................................ 3 years Sales records................................................................. 7 years Scrap and salvage records (inventories, sales, etc.)............ 7 years Service contracts/extended warranty..... 10 years after termination Stenographers’ notebooks................................................ 1 year Stock and bond certificates (canceled).............................. 7 years Stockroom withdrawal forms............................................ 1 year Subsidiary ledgers......................................................... 7 years Tax returns and worksheets, revenue agents’ reports, and other documents relating to determination of income tax liability........................Permanently Time books/cards.......................................................... 7 years Trademark registrations and copyrights.......................Permanently Training manuals......................................................Permanently Union agreements....................................................Permanently Voucher register and schedules........................................ 7 years Vouchers for payments to vendors, employees, etc. (includes allowances and reimbursement of employees, officers, etc., for travel and entertainment expenses)....... 7 years Withholding tax statements.............................................. 7 years Experience the Eide Bailly Difference | www.eidebailly.com An Independent Member Firm of HLB International Rev: 01/2014