Record Retention Guidelines
The following chart provides a general guideline for the retention of many types of records.
The specific holding periods for any record retention policy should be given careful scrutiny by management and legal advisors, especially in light of any pending investigations, regulated industry requirements or contract covenants. In addition to these general guidelines, each business should consider any industry standards that may affect the holding period of records due to unusual legal circumstances.
| Accounting | |
|---|---|
| Accounts receivable reports | 3 years |
| Accounts payable reports | 3 years |
| Auditors’ reports/work papers | Permanent |
| Bank deposit slips | 3 years |
| Bank statements, reconciliations | 7 years |
| Budgets | 3 years |
| Cancelled checks | 7 years |
| Cash disbursements journal | Permanent |
| Cash receipts journal | Permanent |
| Depreciation records | Permanent |
| Employee expense reports | 3 years |
| Volunteer expense reports | 3 years |
| Independent contractor expense reports | 3 years |
| Employee payroll records (W-2, W-4, annual earnings records, etc.) | 4 years* |
| Financial statements (annual) | Permanent |
| Financial statements (interim/internal) | Permanent |
| General journal or ledger | Permanent |
| Inventory lists | Permanent |
| Invoices | 3 years |
| Payroll journal | 4 years |
| Petty cash vouchers | 3 years |
| Corporate Records | |
|---|---|
| Annual Report (State of Illinois) | Permanent |
| Constitution | Permanent |
| Bylaws | Permanent |
| IRS Determination Letter | Permanent |
| Contracts, sales (UCC) | 4 years |
| Contracts, generally | 10 years* |
| Contract, government | 4 years* |
| Minutes (board executive session) | Permanent |
| Minutes (board and committees with board authority) | Permanent |
| Minutes (committees without board authority) | 5 years |
| Qualifications to do business | Permanent |
| Insurance | |
|---|---|
| Accident reports | 6 years |
| Insurance claims | 6 years* |
| Insurance policies | Permanent |
| Miscellaneous Legal | |
|---|---|
| Claims and litigation files | 10 years* |
| Copyright, patent and trademark registrations | Permanent |
| Personnel | |
|---|---|
| Applications | 1 year |
| Employee earnings/payroll records | 6 years* |
| Employee files | 6 years* |
| Employee pension records, including service, eligibility, personal Information, pensions paid | 6 years* |
| Employment contracts | 10 years |
| Garnishments | 10 years |
| Government reports | 6 years |
| Pension, profit-sharing plans | Permanent |
| Time cards/sheets | 4 years |
| General | |
|---|---|
| Income tax returns and cancelled checks (federal, state, local) | Permanent |
| Payroll tax returns | 4 years |
| Sales and use tax returns | 10 years |
| Taxes | |
|---|---|
| Supporting correspondence and notes re: patents, copyrights, licenses, agreements, bills of sale, permits, liabilities, etc. | Greater of “life of principal document which it supports” or 3 years |
| *An asterisk (*) following a number signifies that the retention period begins after final payment, settlement, expiration, termination, sale, etc. |
We Are Here To Help
We perform our duties best when we get to know your business and can tailor our services to your specific situation.
