Record Retention Guide

Creating and Storing Electronic Backup Records

Keeping electronic backups of essential documents, such as bank statements, tax returns, and insurance policies, is now easier than ever. Most financial institutions provide documents electronically, and much financial information is accessible online. For paper-only records, consider scanning and converting them to digital formats, which can then be stored on external devices or online for added security.

Benefits of Online Backups:

• Enhanced Security: Online backups protect your data from physical damage, like natural disasters, by storing it in a different region.
• Accessibility: Access your information from anywhere, anytime.

Important Note on Identity Theft:
Dispose of any unnecessary documents containing personal information securely by shredding them, not just throwing them away, to prevent identity theft.

Document Retention Guidelines For Businesses:

• Keep for 1 Year:Customer and vendor correspondenceDuplicate deposit slipsPurchase orders (non-Purchasing Department copies)Receiving sheets, requisitions, stenographer’s notebooks, stockroom withdrawal forms
• Keep for 3 Years:Employee records (after termination)Employment applicationsExpired insurance policies, general correspondence, internal audit and reports, petty cash vouchersTime cards for hourly employees, savings bond registration records
• Keep for 6 Years:Accident reports and claims, accounts payable and receivable ledgers, bank statements, canceled checks, employment tax recordsExpense schedules, expired contracts, inventories, payroll records, plant cost ledgers, sales records, subsidiary ledgers, travel records
• Keep Indefinitely:Audit reports, important canceled checks, cash books, contracts, corporate documents, deeds, financial statements, general ledgers, insurance recordsLegal records, minute books, mortgages, property appraisals, retirement records, tax returns, trademarks, and patents

For Individuals:

• Keep for 1 Year:Bank statements, paycheck stubs (reconcile with W-2), canceled checks, mutual fund and retirement statements
• Keep for 3 Years:Credit card statements, medical bills (for insurance disputes), utility records, expired insurance policies
• Keep for 6 Years:Supporting tax return documents, accident reports, medical bills (if tax-related), property records, sales receipts, wage garnishments
• Keep Indefinitely:CPA audit reports, legal records, important correspondence, tax returns, investment trade confirmations, retirement records

Special Circumstances:

• Car records (until sold)
• Credit card receipts (with statement)
• Insurance policies (for the policy's life)
• Mortgages/deeds/leases (6 years beyond the agreement)
• Property records (until sold)
• Warranties and instructions (for the product's life)
• Stock and bond records (6 years beyond selling)
• Depreciation schedules (3 years after the asset’s tax life)

By following these guidelines, you can ensure that your financial records are organized, secure, and accessible when needed.