This is a question we get often from our small business clients. It’s amazing how much paperwork a business generates and it can be overwhelming to figure out what needs to be saved and for how long. The IRS sets basic standards related to “tax records” and other agencies or professionals have different ideas on length of time a business record should be kept. The following is a basic guideline for business records:
Permanently:- general ledgers and journals
- chart of accounts
- depreciation schedules
- fixed asset purchases/leasehold improvements
- payroll records, including W-2s, 940s, 941s
- year-end financial statements
- tax returns and supporting documents
- articles of incorporation, bylaws, meeting minutes, shareholder records, stock certificates etc.
- retirement/benefit plan records
- mortgages and deeds
- patents and trademarks
- audit reports
- bank statements and cancelled checks
- AP & AR documents
- invoices and billing information (customers and vendors)
- leases/mortgages
- contracts with clients and suppliers
- expense reports
- employee agreements/contracts/termination records
- employment taxes
- payroll records
- documents related to litigation
- inventory documentation
- employment applications
- employee disability and illness benefit records
- expired insurance policies
