How long do you need to keep financial records
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At Least Three Years
Monthly and quarterly corporate financial statements should be kept for at least three years.
At Least Six Years
Files showing sales, such as cash register tapes, purchase orders from customers and invoices, should be kept for six years. Payments made to pay taxes, FICA, income tax withholding for employees, workers’ compensation and other personnel-related payments should be safely stored. Also, save bank records of transactions, maintaining checks written and deposits made.
All records concerning employees should be kept indefinitely, including pension records. Should a past employee file for unemployment benefits, apply for a new job, or have questions dating back
to his time of employment, these records must be accessible.
All corporate-related documents should be kept indefinitely, even if the corporation is no longer in business. These documents include the certificate of incorporation, board of director meeting minutes, labor contracts, stock transactions, patents, trademarks and any court case documents. Records of corporation assets and accounts receivable and payable should be kept indefinitely.
The IRS requires records proving income and deductions be kept until the statute of limitations is reached, which is three years from the filing date. However, Jude Coard, a tax partner at the accounting firm Berdon L.L.P. recommends retaining copies of tax returns and payments made to pay taxes indefinitely.Source: www.ehow.com
Category: Personal Finance