Record Keeping

Record Keeping: How much is enough? - Depending on the specific needs of the business, government regulations determine to what extent offices need to save documents. Trying to keep the office clutter-free, while balancing the necessity of keeping required records can be tricky. It helps to classify your documents as necessary – those to be retained, unnecessary (those to be thrown away), and useful (those to keep in an off-site storage area or, if office space allows, a dedicated area in the office).

Here are some general guidelines for documents that should be retained:

Keep permanently: records of business accounts, property deeds and mortgages, insurance records, credit history, year-end financial statements, stock and bond records, employee and sub-contractor contracts, medical and retirement plans, certificates of incorporation, company bylaws, minutes of shareholders’ meetings, list of stockholders, trademark registrations, patent certificates, copyrights, canceled checks, receipts from important payments and purchases, accountants’ audit reports, and property appraisals.

Keep for 8 years: expired contracts and leases, canceled checks relevant to taxes, expense records, payroll records, personnel records of former employees, inventories, purchase and sales records, accident reports and claims, tax returns.

Keep for 3 to 5 years: correspondence, employment applications, internal audit reports.

Keep for 1 year: monthly bank statements, deposit slips, all canceled checks, purchase orders, receiving sheets, stockroom withdrawal forms.

Provided by: Theresa A. Martinez
President
ASAP Solutions