When and How To Dispose of Financial Records

Business financial records include any corporate accounts statements, audits, forms and activity related to these procedures. Some of these documents may overlap with categories found in other sections within this guide.

Suggested Retention Duration for Select 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

Disposing of Financial Records Properly

Once the decided retention duration has passed according to your retention schedule, organizations are strongly recommended to completely destroy all financial documentation through a secure, transparent process.

This process will be identical to the recommended guidelines for secure document destruction found on the How to Dispose of Contracts page.

Different processes are outlined in paper and digital materials.

Other Documents

A similar table will be provided in the corresponding sections for:

Important note: This list is only meant as a general guideline, not a substitute for legal advice. Consult your CPA or a New York business attorney for specific advice on best practices and legal compliance requirements.

Naid