Today, more than ever, business owners suffer from document overload. The two questions we hear over and over are: "Which records should I keep?" and "Which records can I destroy?"

A well-defined record retention program is an important part of your record keeping system. Factors to consider when establishing a record retention program include federal and state tax laws, labor laws, government regulations, statutes of limitations on litigation that may affect your business and the general information retrieval needs of your business.

The periods listed below are the recommended minimums. IRS audits are usually initiated within three years after the filing date of income tax returns. However, they are entitled to audit a return within seven years when negligence is involved, and indefinitely in cases of fraud.

If possible be conservative. There is a risk any time you throw away a business record.

Be sure to shred any and all-financial documents for security.

• Purchase orders (except purchasing department copy)

• Personal employment applications

• Stockroom withdrawal forms

• Bank reconciliations

• General correspondence

• Duplicate deposit checks

• Employment applications (not hired)

• Expired insurance policies

• Internal audit reports and working papers

• Miscellaneous internal reports

• Petty cash vouchers

• Physical inventory tags or sheets

• Receiving sheets

• Accident reports and claims for settled cases

• Accounts payable ledgers (computer runs)

• Accounts receivable ledgers (computer runs)

• Automobile logs

• Bank Statements

• Benefits (after expired)

• Bills of lading

• Cash books

• Cash register tapes

• Cancelled checks (see exception under "Permanently")

• Commission records

• Correspondence with customers

• Expired contracts and leases

• Employee personnel records after termination

• Expense reports

• General journals

• Information returns

• Inventory records

• Investments (after disposal)

• Invoices to customers from vendors

• Notes receivable ledgers (computer runs)

• Notes payable ledgers (computer runs)

• Payroll tax returns

• Purchase orders

• Sales tax returns

• Time cards

• Articles of incorporation and bylaws

• Capital stock and bond records (ledgers, transfer registers, etc) – retain with related papers

• Legal and other important correspondence

• Deeds and mortgages

• Copyright and trademarks

• Fixed asset acquisition invoices

• Depreciation schedules

• Employee benefit plan documents and amendments, including accounting records and participants’ allocation schedules

• Year-end financial statements (other months optional)

• General Ledgers

• Licenses and permits

• Minute books – Board of Directors and Stockholders meeting

• Patents

• Property appraisals by outside appraisers

• Property records (costs, blueprints and plans)

• Tax return and worksheets, revenue agents’ reports and other documents relating to determination of tax liability.
  
  KEEP RELATED CANCELLED CHECKS TO ABOVE ITEMS!

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info@smwcpa.com

675 W. College St.
Lake Charles, LA 70605
Telephone: (337) 477-6363
Toll Free: (877) 436-6363