How Long Should You Keep Financial Records? Sample Retention and Destruction Schedule

We often get asked how long you should keep important documents and when is it time to clean up the office.  So, we compiled the below chart with some rules-of-thumb to help keep your business organized.

Description of Records	Manner of Keeping Record	Retention Period	Disposition
Accounts payable ledgers and schedules	Compile and file records on annual basis.	Seven Years.  Store with financial records.	Archive with financial records and shred after three years of storage.
Accounts receivable ledgers and schedules	Compile and file records on annual basis.	Seven Years.  Store with financial records.	Archive with financial records and shred after three years of storage.
Annual information returns (IRS Forms 990)	Federal law requires that the three most recent years’ returns be kept in the organization headquarters and be made available for public inspection.	Permanent.  Store with financial records.	Archive with financial records at the end of the retention period.
Audit reports	Compile and file records on an annual basis.	Permanent.  Store with financial records.	Archive with financial records at the end of the retention period.
Banking statements and reconciliations	Compile and file records on an annual basis.	Three Years.  Store with financial records.	Shred at the end of the retention period.
Cash books	Compile and file records on an annual basis.	Seven Years.  Store with financial records.	Shred at the end of the retention period.
Chart of accounts	Compile and file records on an annual basis.	Seven Years.  Store with financial records.	Shred at the end of the retention period.
Cancelled checks	For important payments, i.e., taxes, purchases of property, special contracts, etc., checks should be filed with the papers pertaining to the underlying transaction.  Otherwise compile and file records on an annual basis.	Seven Years.  Store with financial records.	Shred at the end of the retention period.
Depreciation schedules	Compile and file records on an annual basis.	Six Years.  Store with financial records.	Shred at the end of the retention period.
Duplicate deposit slips	Compile and file records on an annual basis.	Six Years.  Store with financial records.	Shred at the end of the retention period.
Expenses analysis and distribution schedules	Compile and file records on an annual basis.	Seven Years.  Store with financial records.	Shred at the end of the retention period.
Financial statements (year-end, other optional)	Compile and file records on an annual basis.	Permanent.  Store with financial records.	Archive with financial records at the end of the retention period.
General / private ledgers	Compile and file records on an annual basis.	Seven Years.  Store with financial records.	Shred at the end of the retention period.
Journal entries	Compile and file records on an annual basis.	Seven Years.  Store with financial records.	Shred at the end of the retention period.
Notes receivable ledgers and schedules	Compile and file records on an annual basis.	Permanent.  Store with financial records.	Archive with financial records at the end of the retention period.
Payroll records and summaries	Compile and file records on an annual basis.	Seven Years.  Store with financial records.	Shred at the end of the retention period.
Petty cash vouchers	Compile and file records on an annual basis.	Seven Years.  Store with financial records.	Shred at the end of the retention period.
Property records, including costs, depreciation reserves, year-end trial balances, depreciation schedules, blueprints and plans	Compile and file records on an annual basis.	Permanent.  Store with financial records.	Archive with financial records at the end of the retention period.
Purchase orders	Compile and file records on an annual basis.	One Year.  Store with financial records.	Shred at the end of the retention period.
Requisitions	Compile and file records on an annual basis.	Seven Years.  Store with financial records.	Shred at the end of the retention period.
Tax returns, worksheets, and revenue agents’ reports	Compile and file records on an annual basis.	Permanent.  Store with financial records.	Archive with financial records at the end of the retention period.
Time cards	Compile and file records on an annual basis.	Seven Years.  Store with financial records.	Shred at the end of the retention period.
Vouchers (invoices) for payments to vendors, employees, etc. (includes allowances and reimbursements of employees, officers, and consultants for travel and entertainment expenses.)	Compile and file records on an annual basis.	Seven Years.  Store with financial records.	Shred at the end of the retention period.
Withholding tax statements	Compile and file records on an annual basis.	Seven Years.  Store with financial records.	Shred at the end of the retention period.

If you have further questions or think we missed something, feel free to contact one of our team members.