How long does a business have to hold on to documents before disposing?

Question

This applies to bank statements, receipts, payroll, contracts, etc.

Answer 1

The standard is seven years, because that is the typical time for depreciation for most items.

The IRS is only allowed to investigate back 2 years, unless they uncover proof of earlier fraud in the current fraud investigation so you only have to hold on to your tax records for three years.

Some companies keep their records forever. When a WW2 submarine was found in the Bearing Straight a record check found out what sub it was an who was on it. If an artifact could be recovered from that sub, one with a serial number then the government would probably have records of who ordered it, who made it and where it went.

It depends on the record type. Records that are important like your original receipts for big ticket items should be kept for the life of the item. Wills, life insurance and other personal documents should be kept for the life of the person and then some. I have records on my Grandmother that prove she was an immigrant and so I can qualify for minority status.

Ford and GM probably still have the original records of the first people who bought their cars. They may have archived them to microfiche or electronic format, but I wouldn't be surprised to find a huge warehouse somewhere with all the receipts in it.

If you drive your car for business, not including commuting then it is a business deductible expense and you don’t have to keep each gas receipt, you only need to show a log of them; actually the law says you have to be able to produce the records; even if that means from some sketchy data; as long as you can justify it.

My father ran the books for our flower shop and he kept the receipts until he sold the store. They were only records of flowers sold and delivered, but important enough to hang on to. Police departments keep the criminal records forever; a case could be reopened even after decades.

It depends on how important the records are. How important they are to your company and to your customers. If you have receipts for work done then it can be important to hang on to them. But, if you are talking about what food you bought for your restaurant then soon after the food is gone the records can be tossed as well.

Seven years is the best guideline, but as long as you have the capacity and it isn’t a drain on the business then important records should be kept. These are records that PROVE something happened, was done, or sold and they should be kept for the life of that thing a little be after. The higher value the item the longer the records should be kept. But, you don’t need to prove that you bought food from a fish supplier more than a few days after the fish is sold.

Answer 2

You should keep all records readily available for 7 years and then to be safe keep them in storage for another 7 years. I know that seems like a long time. But I have had clients have to go back as many as 10 years to find certain documents.

Answer 3

That depends on the business and the State.
A medical office has its rules.
A law firm has its rules. It may be required to keep wills, closing statements, financials forever.
etc.

I general, it is 7 years, but check. In practice, it is best to keep all forever. Todays cheap data storage makes it easy to scan and keep an elecronic copy.

Answer 4

i think of you have a pair of suggestions. #one million, we could get some greater data... Is he on the lease settlement on the valuables you reside at?, could he have the skill to furnish receipts (the two contained in one in each and every of those a verify, funds order, or handwritten from you or your landlord) that he does in actuality stay there? Has he ever given you funds for lease and if so has he stored it contemporary? ... i think of somebody else mentiond to ask your apt. supervisor or landlord via fact they could have had to handle somebody forsaking on their assets till now. In long island it is my information that if somebody abandons products in an apt. for greater beneficial than 30 days that your in common terms option is to offload the products and not use them for inner maximum benefit, it is once you're a landlord. If he won't be able to teach the products are his then after 30 days they could desire to be yours. you additionally can verify on the police station, you do not could desire to provide them your call... look after your self, he could desire to be paying you lease for his issues being there and you're able to maintain them as collateral till he will pay you his factor of the month-to-month lease and utilities, and the different monies he owes you alongside with the apt. If he left each and every thing including all of his clothing then what else are you to anticipate ! If he's not in detention center he got here across somebody else who's prepared to pay for his desires. you're saying he says he's coming, whilst? make a time and date, has he stated this as quickly as, two times, twenty cases? tell him if he does not come you will now not waste some time waiting for him... mean it, exchange your locks!

Answer 5

I belive it may be up to 7 years.

Answer 6

different periods for diff docs - google "record retention"