Financial Records Disposal
When To Dispose of Financial Records
From audit reports to government grants to purchase orders, the list of financial records that need to be retained is seemingly endless, and applies to a wide variety of organizations, from government agencies to educational institutions to businesses. Because these are some of the most important and most confidential documents that most entities have to deal with, having a document retention schedule that employees can stick to is vital for eliminating information security risks and potential noncompliance with the law.
Retention Duration Guide for Financial Records
| Document Type | Suggested Minimum Retention |
| Accounts receivable, accounts payable ledgers and schedules | 7 years |
| Audit reports | Permanently |
| Bank statements, electronic funds transfer documents, deposit records, cancelled checks | 7 years |
| Chart of accounts | Permanently |
| Checks for large or crucial purchases | Permanently |
| Correspondence with vendors and customers | 2 years |
| Deeds, bills of sale, mortgages for held assets | Permanently |
| Depreciation schedules and reports | Permanently |
| Donations | 7 years |
| Year-end financial statements | Permanently |
| Garnishments | 7 years |
| General business/finance ledgers, year-end trial balance | Permanently |
| Government grants (funded) | 7 years after final closure |
| Insurance policies | 3 years after expiration |
| Insurance records such as claims, accident reports, settlements | Permanently |
| Internal audit reports | 3 years |
| Invoices to customers or from vendors | 7 years |
| Inventory records | 7 years |
| Loan documentation | Permanently |
| Patents, copyrights, trademarks and related documentation | Permanently |
| Petty cash vouchers | 3 years |
| Property/asset appraisals | Permanently until sale |
| Property blueprints and utility diagrams | Permanently until sale |
| Purchase orders | 7 years |
| Sales records | 7 years |
| Corporate tax returns and worksheets | Permanently |
| Timekeeping sheets, books, cards, etc. | 7 years |
| Receipts and vouchers of payment to employees or vendors | 7 years |
| Payroll tax withholding statements | 7 years |
| Documentation of workers compensation claims | 10 years after final settlement |
Important note: This list is not a substitute for legal advice. Contact your CPA or attorney for information on specific guidelines and laws regarding records retention best practices and legal compliance.
How to Properly Dispose of Financial Records
While it is important to develop a company policy about how long to retain financial records, it is equally important to pay attention to how those documents are disposed of at the end of their lifespan. When a document has reached the end of its retention period, it is recommended that financial institutions and other organizations that handle financial documents have a plan for completely destroying that information.
You can find more information about the recommended guidelines for secure document destruction as well as digital materials on our page about disposing of contracts.
What People Are Saying About PROSHRED®
For $20, Proshred took my 13 gallon bag of paper and shredded it before me. Service was to the point and brief. Note the last... read moreFor $20, Proshred took my 13 gallon bag of paper and shredded it before me. Service was to the point and brief. Note the last shredding job is ar 3pm [not 4pm as stated on the Google Maps]. read less
C. Ojar8/26/2022Excellent service.
Kelly Sullivan4/21/2022Proshred was professional from getting the quote to the pick-up of the shredding, Ricardo was very friendly and accommodating. Very Happy would recommend this company.
A Forshee12/03/2021Jose & Ricardo were absolutely fantastic! They were so professional, timely, efficient and kind during delivery of our shred bin. I would recommend PROSHRED to... read moreJose & Ricardo were absolutely fantastic! They were so professional, timely, efficient and kind during delivery of our shred bin. I would recommend PROSHRED to anyone based off our phenomenal experience with these two gentlemen. read less
John Ammatuna12/03/2021We used Proshred to clean up a ton of old documents at our retail location in Hartsdale, NY. The team was extremely responsive to every... read moreWe used Proshred to clean up a ton of old documents at our retail location in Hartsdale, NY. The team was extremely responsive to every email to leading up to and following the appointment. The pair that came onsite to do the shredding were enthusiastic and efficient. It was a true pleasure to hire the team at Proshred for our project.We were able to watch the shredding from a camera on the truck to ensure our confidential documents were completely destroyed.I highly recommend Proshred for their excellent work ethic. read less
Laura Violet6/30/2021Great service at great rates. They were very accommodating to even small jobs and very convenient from all major highways for a drop off.... read moreGreat service at great rates. They were very accommodating to even small jobs and very convenient from all major highways for a drop off. Steve is very professional and the drop to payment takes only minutes. They also offer at home service, which is great for larger jobs. read less
RMM Finance Dept.12/31/2020Because of the virus my husband was cleaning out his home office, as a realtor he had documents more than 10 years old. We... read moreBecause of the virus my husband was cleaning out his home office, as a realtor he had documents more than 10 years old. We didn’t know where to go, and found Pro Shed online. We set up an appointment for drop-off with Steve. He was very accomodating, professional and courteous. When he noticed my husband’s military hat, he went out of his way to assist while still being socially distant. The documents were extremely sensitive due to the nature of my husband’s business. We now have a much more organized office, we would definitely recommend Pro Shred and Steve to other businesses,friends, and relatives! Thank you Steve! read less
Marietta Sanzo12/31/2020