Records Retention Schedule: How Long Should You Keep Business Records?
Knowing how long to keep business records can be difficult. Different types of records have different recommended retention periods, and some records should be retained permanently.
Mabey’s Records Management provides this records retention schedule as a general reference for businesses. The suggested retention periods below indicate the number of years records should be retained. Requirements can vary based on your industry, location, tax situation, legal obligations, and other circumstances, so consult your attorney, accountant, or applicable regulatory agency when establishing your company’s records retention policy.
How Long Should You Keep Business Records?
There is no single retention period that applies to every business document. The appropriate length of time depends on the type of record and any applicable tax, legal, regulatory, contractual, or industry requirements.
Mabey’s suggested retention schedule includes records that may need to be kept for three years, five years, seven years, ten years, or longer. Some records are recommended for permanent retention, while others have specific retention periods after a contract ends or an underlying asset is disposed of.
Common Business Records and Suggested Retention Periods
- Bank Statements — 7 years
- Bank Reconciliations — 3 years
- Contracts – Vendor — 7 years
- Expense Reports — 5 years
- Invoices – Issued — 7 years
- Invoices – Received — 7 years
- Purchase Invoices — 7 years
- Sales Invoices — 7 years
- Tax Records — 10 years
- W-2 Forms — 7 years
- Property Tax Records — 10 years
- Accounts Payable Ledger — 7 years
- Accounts Receivable Ledger — 7 years
- General Journal — 10 years
- Payroll Journal — 10 years
- Sales Journal — 10 years
These are selected examples from Mabey’s complete records retention schedule. See the sections below or download the complete schedule for additional record types and suggested retention periods.
Basic Business Records Retention
Businesses generate a wide range of financial, operational, administrative, and transactional records. Mabey’s suggested retention periods for common business records include:
Financial and Accounting Records
- Accounts Payable Ledger — 7 years
- Accounts Receivable Ledger — 7 years
- Cash Journal — 10 years
- General Journal — 10 years
- Payroll Journal — 10 years
- Purchases Journal — 10 years
- Sales Journal — 10 years
- Voucher Journal — 10 years
- Bank Statements — 7 years
- Bank Reconciliations — 3 years
- Check Register — 10 years
- Expense Reports — 5 years
- Petty Cash Records — 3 years
- Commission Reports — 6 years
- Cost Accounting Records — 5 years
- Financial Interim Reports — 3 years
Invoices, Purchases and Sales Records
- Bills of Lading — 5 years
- Delivery Receipts — 3 years
- Deposit Slip Copies — 3 years
- Invoices Issued — 7 years
- Invoices Received — 7 years
- Purchase Invoices — 7 years
- Purchase Order Copies — 3 years
- Receiving Reports — 3 years
- Remittance Statements — 3 years
- Requisitions — 3 years
- Sales Invoices — 7 years
- Sales Slips (Cash and Charge) — 7 years
- Shipping Tickets — 5 years
Contracts and Correspondence
- Vendor Contracts — 7 years
- Accounting Correspondence — 5 years
- Credit and Collection Correspondence — 7 years
- General Correspondence — 3 years
How Long Should You Keep Payroll and Employee Records?
Payroll and employee records often contain sensitive information and may have specific retention requirements. Mabey’s suggested retention schedule includes the following periods:
- Daily Time Reports — 5 years
- Earnings Records — 7 years
- Pay Checks — 7 years
- Time Cards — 5 years
- Worker’s Compensation Reports — 10 years
- Wage Rate Records — 7 years
- Social Security Records — 7 years
- W-2 Forms — 7 years
- Travel Records (Employee) — 3 years
Employee Records After Termination
Some employee-related records have a suggested retention period that begins after employment ends.
- Employee Applications — 7 years
- Employee Service Records — 7 years
- Personnel Files — 7 years
- Salary and Wage Changes — 7 years
- Salary Receipts — 7 years
- Unemployment Claims — 7 years
- Withholding Certificates — 7 years
- Disability Claims — 7 years
- Employee Contracts — 7 years
- Applications — 7 years
- Labor Contracts — 7 years
- Personnel Correspondence — 7 years
How Long Should You Keep Tax Records?
Mabey’s suggested records retention schedule recommends retaining tax records for 10 years. Specific tax-related records may have different suggested periods depending on the type of record.
- Tax Records — 10 years
- Payroll Tax Returns (Copies) — 7 years
- Personal Property Tax Records — 10 years
- Sales and Use Tax Records — 10 years
- Property Tax Records — 10 years
Important: These are Mabey’s suggested retention periods and are provided as a general reference. Tax record keeping requirements can vary depending on the type of record and the circumstances. Consult your tax professional or applicable tax authority for guidance specific to your business.
Which Business Records Should Be Kept Permanently?
Not every business record has a specific number of years attached to it. Mabey’s records retention schedule recommends that certain records be retained permanently.
Financial and Corporate Records
- Annual Financial Reports
- Audit Reports
- Audited Annual Financial Reports
- General Ledger
- Year-End Journal Entries
- Dividend Register
- Capital Stock Applications for Authorization and Issuance
- Capital Stock Certificates (Cancelled)
- Capital Stock Ledger
- Transfer Records
- Stockholder Records
- Bonds (Records of Insurance)
Legal and Property Records
- Articles of Incorporation
- Minute Books
- Patent Records
- Trademark Records
- Union (Labor) Contracts
- Warrants
- Property Account Ledgers
- Property Appraisals
- Deeds and Titles
- Plans and Specifications
- Plant Ledger
- Pension Records
Permanent Tax Records
- Estate Tax Returns (Copies)
- Gift Tax Returns (Copies)
- Income Tax Returns (Copies)
Because permanent records can document a company's legal, financial, ownership, and property history, businesses should have a plan for protecting and organizing these documents over the long term.
Records to Keep After a Contract or Relationship Ends
Some records have retention periods that continue after termination rather than ending when a contract, employment relationship, or other arrangement ends.
- Corporate Contracts — 20 years
- Employee Contracts — 7 years
- Personnel Correspondence — 7 years
- Franchise Agreements — 10 years
- Garnishments — 3 years
- Labor Contracts — 7 years
- Leases — 7 years
- Licenses — 1 year
- Mortgages — 7 years
- Options — 7 years
- Surety Bonds — 3 years
Records to Keep After Disposing of an Asset
Some records should continue to be retained even after the underlying property or asset has been sold or disposed of. Mabey’s suggested retention period for the following records is 7 years after disposal of the underlying asset:
- Checks (Paid and Cancelled) — 7 years
- Depreciation Schedules — 7 years
- Fixed Asset Records — 7 years
- Inventory Records — 7 years
- Invoices – Fixed Assets — 7 years
- Plant Acquisition Records — 7 years
- Property Records of Depreciation — 7 years
- Securities (Brokerage Slips) — 7 years
What Should You Do With Records You No Longer Need?
Once a record has reached the end of its applicable retention period, businesses should determine whether it can be securely destroyed. Documents containing confidential financial, employee, customer, or other sensitive information should be securely disposed of rather than simply thrown away.
Mabey’s provides secure document shredding services for businesses throughout the Capital Region, with options for businesses that need one-time or ongoing document destruction.
Need to Store Records for the Long Term?
Keeping years of business records can quickly take up valuable office space. Mabey’s records management provides secure storage and management solutions for businesses that need to retain physical documents while keeping them organized and accessible.
From secure storage and inventory management to document retrieval and eventual destruction, Mabey’s can help businesses manage records throughout their lifecycle.
Frequently Asked Questions About Records Retention
How long should a business keep records?
There is no single retention period for all business records. The appropriate period depends on the type of record and applicable tax, legal, regulatory, contractual, and industry requirements. Mabey’s records retention schedule provides suggested periods as a general reference.
How long should businesses keep invoices?
Mabey’s suggested retention period is 7 years for both issued and received invoices. Businesses should consider any applicable legal, tax, or regulatory requirements before disposing of records.
How long should businesses keep bank statements?
Mabey’s suggested retention period for bank statements is 7 years.
How long should businesses keep payroll records?
Mabey’s suggested periods vary by record. For example, earnings records and pay checks are listed at 7 years, while daily time reports and time cards are listed at 5 years.
Which business records should be kept permanently?
Mabey’s schedule recommends permanent retention for certain corporate, financial, legal, property, tax, and ownership records, including articles of incorporation, annual financial reports, audit reports, minute books, deeds and titles, general ledgers, and certain tax returns.
When should business records be destroyed?
Records should only be destroyed after the applicable retention period has ended and the business has determined there is no other reason to retain them, such as litigation, an audit, contractual requirements, or another legal or regulatory obligation.
How should confidential business records be destroyed?
Confidential records should be securely destroyed to prevent unauthorized access to the information they contain. Mabey’s offers secure document shredding services for businesses.
Download the Complete Records Retention Schedule
Want a printable reference? Download Mabey’s complete Records Retention Schedule for suggested retention periods covering financial, accounting, payroll, employee, tax, property, contract, and other business records.
Download the Records Retention Schedule (PDF)
Note: Retention periods begin at the end of the fiscal year during which the document was created, not from the date on the document. Tax returns and supporting documents retention period begins on the filing date of the return or its due date (with extensions), whichever is later.
The suggested retention period is noted after the type of record. The figures represent the number of years for retaining the records.