How Long Is Long Enough?
Our guide to important documents, which ones you need to keep, & for how long.
Most records don’t need to live forever, but some absolutely should.
As a rule of thumb, keep financial and tax documents for at least three years, and in some cases up to seven years or permanently, depending on your situation.
Proper retention protects you from IRS audits, supports accurate reporting, and provides documentation if questions arise later.
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Guide to Document Retention:
Keep for One Year:
- Routine vendor correspondence.
- Deposit slips.
- Purchase orders and delivery confirmations.
- Receiving sheets or packing logs.
- Internal task notes or temporary records.
- Routine inventory forms.
Keep for Three Years:
- Employee onboarding and termination paperwork.
- Payroll tax filings and quarterly summaries.
- Expense reimbursements and petty-cash receipts.
- Internal audit or management reports.
- Physical inventory tags.
- Time cards for hourly staff.
Keep for Six Years:
- Accounts-payable and receivable ledgers.
- Bank statements and reconciliations.
- Cancelled checks and payment records.
- Client invoices and purchase invoices.
- Payroll registers and W-2/W-4 support.
- Equipment purchase or lease agreements.
- Sales-tax filings and supporting schedules.
Keep Forever:
- Business formation papers (LLC, corporation, EIN).
- Annual tax returns and supporting schedules.
- Property deeds, titles, and closing documents.
- Loan and financing agreements.
- Retirement-plan and benefit documentation.
- Board minutes and major contracts.
- Depreciation and fixed-asset records.
Keep for One Year:
- Monthly utility or phone statements.
- Routine credit-card or bank statements.
- ATM receipts and balance confirmations.
Keep for Three Years:
- Credit-card statements tied to deductions.
- Medical bills (unless insurance claims remain open).
- Canceled insurance policies.
- Utility bills used for home-office or rental deductions.
Keep for Six Years
- Individual tax returns and all supporting schedules.
- Proof of income: W-2s, 1099s, K-1s.
- Mortgage interest and property-tax receipts.
- Investment purchase and sale records.
- Charitable-contribution documentation.
Keep Forever:
- Birth, marriage, and adoption certificates.
- Social Security cards and passports.
- Property deeds and vehicle titles.
- Retirement-plan statements and IRA rollover documents.
- Estate-planning records (wills, trusts, powers of attorney).
- Major loan satisfactions and payoff confirmations.
Some records require keeping until a specific event:
- Vehicle titles → retain until sold or transferred.
- Real-estate documents → retain for life of ownership + 7 years.
- Warranty receipts → keep for the life of the product.
- Stock or bond records → keep 6 years after sale.
- Legal settlement or claim documents → permanent.
Move away from bulky filing cabinets:
- Scan & store PDFs in a secure cloud drive.
- Name files with “Year_DocumentType” for searchability.
- Encrypt sensitive folders and back them up monthly.
- Keep separate archives for personal and business records.
If you’re unsure how long to retain a document or need help creating a digital filing system, AP CPA Advisors can help.
We’ll review your records, align them with IRS guidelines, and establish a retention plan that fits your operations.
Still Have Questions?
We’re happy to clarify anything about our services, process, or pricing.
Let’s talk through your specific needs and build a plan that works for your business.
Helpful Links & Resources
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