Records Retention

Keep in mind, this information is provided as a general guideline only. If you have questions about destroying any tax or accounting records, please contact a KPM professional team member.

Accounting Records – Retention Period

Accounts Payable –  7 Years
Accounts Receivable - 7 years
Depreciation Schedules - 7 Years
Expense Records (Receipts and invoices) – 7 Years
Financial Statements (annual) – Permanent
General Ledger – 7 Years
Inventory Records – 7 Years (Permanent for LIFO System)
Loan Payment Schedules – 7 Years
Purchase Orders (1 copy) – 7 Years
Sales/Revenue Records – 7 Years

Bank Records - Retention Period

Bank Reconciliations – 3 Years
Bank Statements – 7 Years
Cancelled Checks – 7 Years (Permanent for real estate purchases)
Electronic Payment Records – 7 Years

Corporate Records - Retention Period

Board Minutes – Permanent
Bylaws – Permanent
Business Licenses – Permanent
Contracts – Major – Permanent
Contracts – Minor – Life + 4 Years
Insurance Policies – Life + 3 Years (Check with your agent. Liability for prior years can vary.)
Leases/Mortgages – Permanent
Patents/Trademarks – Permanent
Shareholder Records – Permanent
Stock Registers – Permanent
Stock Transactions – Permanent

Employee Records – Retention Period

Benefit Plans – Permanent
Employee Files (ex‐employees) – 7 Years (or statute of limitations for employee lawsuits)
Employment Applications – 3 Years
Employment Taxes – 7 Years
Payroll Records – 7 Years
Pension/Profit Sharing Plans – Permanent

Real Property Records - Retention Period

Real Estate Purchases (escrow documents) – Permanent
Construction Records – Permanent
Leasehold Improvements - Permanent
Home Improvement Records  -Permanent
Lease Payment Records - Life + 4 Years

Tax Returns - Retention Period

Federal and State Returns – Permanent
IRS and State Tax Audit Reports – Permanent
Tax Related Correspondence – Permanent