subject: Irs Document Rules And Technology Disaster Recovery [print this page] Know which business Paperwork to save and which to shred.
One of the biggest mistakes small business make in document retention is lack of organization. With today's technology, the savvy business owner should be moving to the paperless office and electronically storing most of the daily transaction paperwork but also specifically concentrate on the "seven year" document retention group which includes most tax documents, bank statements, employment tax records and more. For a complete list of Small Business Document Retention Rules click this link.
For your document retention program to be effective it is vitally important to have a solid disaster recovery program in place - one that is viable and solid enough to get you beyond the statutes of limitations for your state and various federal agencies. Read more about Disaster Recovery for Document Retention Objectives at this link.
What Documents to Keep & for How Long
Permanent Retention
Articles of incorporation
Audit reports of public accountants
Canceled checks for important payments taxes, property acquisitions, etc.
Capital stock and bond registers
Copyrights
Correspondence (legal and important matters only)
Deeds and mortgages
Depreciation schedules
Financial statements (year-end other months optional)
General ledgers and year-end trial balances
Licenses and permits
Property appraisals by outside appraisers
Property records costs, blueprints, and plans
Tax returns and worksheets, revenue agents' reports, and other documents relating to determination of tax liability
One Year Document Retention
Personnel employment applications
Purchase orders (except purchasing department copy)
Stenographers' notebooks
Stockroom withdrawal forms
Three Years Document Retention
Bank reconciliations
Duplicate bank deposit slips
Expired insurance policies
General correspondence
Internal audit reports and working papers
Petty cash vouchers
Physical inventory logs
Seven Years Document Retention
Accident reports and claims (settled cases)
Accounts payable ledgers (computer runs)
Accounts receivable ledgers (computer runs)
Automobile logs
Bank statements
Bills of lading
Cash books
Commission records
Contracts and leases (expired)
Employee personnel records after termination
Employment tax reports
Expense reports
General journals
Inventory records
Invoices to customers and from vendors
Payroll records and summaries, including payment to pensioners
Personal property tax returns
Purchase orders
Sales tax returns
Please see your accountant and or attorney for verification of facts and additional information.
