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Business Ledgers and Other Key Documents. CPAs tend to be a conservative group and will often recommend that businesses keep their journal entries, profit and loss statements, financial statements, check registers and general business ledgers permanently. Similarly, major business documents, like annual reports, corporate by-laws and amendments, Board of Director information, annual meeting minutes and business formation documents, should also be retained on a permanent basis. Aside from supportive tax records, other documents such as accounts payable/receivable ledgers, invoices and expense reports should be retained for a minimum of 7 years.
Bank Account and Credit Card Statements. Generally, these records should also be retained for about 7 years.This retention period may be longer if they are supporting documents for tax purposes. However, if these statements have no tax or other key business purpose, then consider retaining your business’s detailed annual statements for 7 years and disposing of underlying monthly statements after about a year.
There may be times when you must suspend your usual record disposal plans, such as when litigation is likely or pending on a business matter. You may wish to consult with your attorney or tax professional to look into your individual circumstances to help guide your particular business on its record keeping and disposal policies. To avoid identity theft and to protect sensitive business information, be sure to properly dispose of or shred appropriate business records.
