Don't cry "but, but I might really need that." Yes, there are records you should keep, must keep, keep briefly, or don't keep. Your solution to having what you really need and getting rid of what could be a problem lies in creating a records retention plan. Do contact your financial planner, accountant, and/or business attorney for guidance. Find samples of plans on the internet. Then put together a plan for your business to save time, space, and headaches.
Here is my plan as a sample of a records retention plan for solopreneurs.
Happy planning.
| Type of Record | Retention Period |
| Accident reports and claims (settled cases) | 7 yrs |
| Accounts payable ledgers and schedules | 7 yrs |
| Accounts receivable ledgers and schedules Inventories of products, materials & supplies | 7 yrs |
| Audit reports of accountants Invoices to customers | Permanently |
| Bank reconciliation | 1 yr |
| Capital stock and bond records; ledgers, transfer registers, stubs showing issues, record of interest coupons, options, etc. | Permanently |
| Cash Books | Permanently |
| Charts of accounts | Permanently |
| Checks (canceled, but see exception below) | 7 yrs |
| Checks (canceled for important payments, i.e. taxes, purchases of property, special contracts, etc. - checks should be filed | Permanently |
| Contracts (expired) | 7 yrs |
| Contracts still in effect | Permanently |
| Correspondence (general) | 3 yrs |
| Correspondence (legal & important matters) | Permanently |
| Correspondence (routine) with customers or vendors | 1 yr |
| Deeds, mortgages, and bills of sale | Permanently |
| Depreciation schedules | Permanently |
| Duplicate deposit slips | 1 yr |
| Electronic Messages (email) | 30 days |
| Expense analyses and expense distribution schedules | 7 yrs |
| Financial statements (end of year, other months optional) | Permanently |
| General & private ledgers (and end of year trial balances) | Permanently |
| Insurance policies (expired) | 7 yrs |
| Insurance records, current accident reports, claims, policies, etc. | Permanently |
| Internal audit reports (in some situations longer retention periods may be desirable) | 3 yrs |
| Invoices from vendors | 7 yrs |
| Journals | Permanently |
| Notes receivable ledgers & schedules | 7 yrs |
| Property records, including costs, depreciation reserves, end of year trial balances, depreciation schedules, blueprints & plans | Permanently |
| Sales records | 7 yrs |
| Scrap and salvage records (inventories, sales, etc.) | 7 yrs |
| Tax returns & worksheets, revenue agents' reports, and other documents relating to determination of income tax liability | Permanently |
