Tips
The following is a collection of finance-related tips that you may find helpful.
How long should records be kept?
Just how long you should keep records is partly a matter of judgement and a combination of state and federal statutes of limitations. Federal returns can be audited for up to three years after filing (six years if underreported income is involved), so all records substaining tax deductions should be kept at least that long.)
Here are recommended retention periods for various records:
| Records |
Retention Period |
| Cancelled Checks |
7 years |
| Credit card receipts |
7 years |
| Paid invoices |
7 years |
| Bank deposit slips |
7 years |
| Bank statements |
7 years |
| Tax returns (uncomplicated) |
7 years |
| Tax returns (all others) |
Permanent |
| Employment tax returns |
7 years |
| Expense records |
7 years |
| Financial statements |
Permanent |
| Contracts |
Permanent |
| Minutes of meetings |
Life of company plus 7 years |
| Corporate stock records |
Permanent |
| Employee records |
Period of employment plus 7 years |
| Depreciation schedules |
Life of assets plus 7 years |
| Real estate records |
Ownership period plus 7 years |
| Journal and general ledger |
Life of business plus 7 years |
| Inventory records |
7 years |
| Home purchase and improvement records |
Ownership period plus 7 years |
| Investment records |
Ownership period plus 7 years |
Requirements for computer-maintained records are generally the same as for the manually kept records.
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