Rhode Island Certified Public Accounting

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Tax Law Changes & Industry Updates

Document Retention Guide

DOCUMENT RETENTION GUIDE

For your convenience, we have created a document retention guide to help you maintain your records. As a reminder, Muto, Vollucci & Co., Ltd.’s current document retention policy is to keep copies of the records you have supplied us along with our work papers for your engagement for a period of 6 years.  After 6 years, our work papers and files will no longer be available.  Physical deterioration or catastrophic events may shorten the time during which our records will be available; therefore, please supply us with copies and keep your originals.

BUSINESS DOCUMENTS:

Supporting documents such as client and vendor correspondence, steno pads and purchase orders should be kept until the following fiscal or calendar year, but you do not have to keep them any longer than that unless there is something that you feel is necessary.

Financial

3 years

  • Petty Cash Vouchers

  • Internal Audit Reports

6 – 7 years

  • Accounts Payable Ledgers and Schedules

  • Accounts Receivable Ledgers and Schedules

  • Cancelled Checks

  • Cancelled Stock and Bond Certificates

  • Expense Analysis and Expense Distribution Schedules

  • Invoices to Customers

  • Notes Receivable Ledgers, Schedules

  • Bank Statements and Reconciliations

  • Sales Records

  • Subsidiary Ledgers

Company Operations

3 years

  • Employee Personnel Records (after termination)

  • Employment Applications

  • Expired Insurance Policies

  • General Correspondence

  • Internal Reports

  • Savings Bond Registration Records of Employees

  • Time Cards For Hourly Employees

6 – 7 years

  • Accident Reports, Claims

  • Employment Tax Records

  • Expired Contracts, Leases

  • Expired Option Records

  • Payroll Records and Summaries, including payment to pensioners

Real Estate and Company Assets

3 years

  • Physical Inventory Tags

6 – 7 years

  • Inventories of Products, Materials, Supplies

Miscellaneous

6 – 7 years

  • Purchasing Department Copies of Purchase Orders

  • Time Books

  • Travel and Entertainment Records

  • Vouchers for Payments to Vendors, Employees, etc.

  • Voucher Register, Schedules

We suggest you keep the following records indefinitely due to the fact that they might be needed during an audit or a legal dispute.

Financial:

  • Audit Reports from CPAs/Accountants

  • Cash Books, Charts of Accounts

  • Depreciation Schedules

  • Any Type of Financial Statement

  • Tax Returns and Worksheets

Corporate Operation:

  • Incorporation Documents

  • Company Charter

  • Company By-Laws

  • General and Private Ledgers, Year End Trial Balances

  • Legal Records, Correspondence and Other Important Matters

  • Minutes Books of Directors and Stockholders

  • Trademark and Patent Registrations

Real Estate and Company Assets

  • Contracts, Leases Currently in Effect

  • Documents substantiating fixed asset additions

  • Deeds

  • Mortgages, Bills of Sale

  • Property Appraisals

  • Property Records

Miscellaneous

  • Insurance Records, Current Accident Reports, Claims, Policies

  • Investment Trade Confirmations

  • IRS Reports

  • Retirement and Pension Records

 

INDIVIDUAL DOCUMENTS:

Financial

3 years

  • Credit Card Statements

6– 7 years

  • Supporting Documents For Tax Return

  • Wage Garnishments

  • Other Tax-Related Bills

  • Sales Receipts

Miscellaneous

3 years

  • Medical Bills (in case of insurance disputes)

  • Utility Records

  • Expired Insurance Policies

6 – 7 years

  • Accident Reports and Claims

  • Medical Bills (if tax-related)

We suggest you keep the following records indefinitely due to the fact that they might be needed during an audit or a legal dispute.

Financial

  • Income Tax Returns

  • Income Tax Payment Checks

  • CPA Audit Reports

  • Retirement and Pension Records

  • Pay Stubs (keep until reconciled with your W-2)

Property (real estate, cars, etc)

  • Car Records (keep until the car is sold)

  • Credit Card Receipts (keep until verified on your statement)

  • Mortgages / Deeds / Leases (keep 6 years beyond the agreement)

  • Property Records / Improvement Receipts (keep forever or six years after property sold)

Miscellaneous

  • Legal Records

  • Important Correspondence

  • Investment Trade Confirmations

  • Insurance Policies (keep for the life of the policy)

  • Depreciation Schedules and Other Capital Asset Records (keep for 3 years after the tax life of the asset)

Kristen H