 | Sara Wright, now president of Triple Check Business Services, Inc. She heads up a team of accountants with over 75 years of combined experience. The business was started by her grandmother Wanda Hiebert. Sara began working for Wanda right out of high school 13 years ago. Being a tremendous mentor and employer, Wanda was able to teach Sara the basics of business and groom her to eventually take over the business when she retired. Through the years, Sara successfully built up the business client accounting base to more than 100 write up clients and in the process winning several sales and marketing awards. Sara now manages the Wichita location and several business accounts while Wanda remains at the Halstead location. Triple Check has 6 full time employees and provides monthly and quarterly accounting services to businesses, payroll, employee leasing services, business and tax consulting and tax preparation for both individuals and businesses. For questions or to schedule a free no-obligation consultation, Sara can be reached at 316-941-9144. |
Taxes & Accounting
2008-04-01 11:22:00
Keeping records for the IRS
Question: How long is it necessary to keep records for the IRS?
Answer: Keeping business records is not only necessary, but, in some cases, mandatory. The questions many business owners ask is, “What records do I keep and how long should I keep them?
Most owners don’t worry about record keeping because they are so involved with the operation of their business that the paperwork becomes secondary. Secondary, that is, until that paperwork is needed by the bank for a loan or by the government to ensure you are complying with their regulations.
The following is a suggested, general record keeping guide. Only the most used records are listed. If you have questions on how long to keep specific records, consult an attorney or accountant. However, when in doubt, keep them.
TIME RECORD
• 2 Years
General business correspondence
• 7 Years
Bank Deposits and Withdrawals
Payroll Time Sheets
Invoices, Work Orders, Permits and Licenses
Budgets, Expense Reports
Travel and Entertainment Records
Gift and Gratuity Records
Office Equipment Records
Sales Records, Personal Records
Form 8300’s, Tax Reports and Records, Sales and Excise Tax Computations
Old Insurance Policies and Records, Accident Reports and Claims
• 8 Years
Disability Insurance Records, Insurance Safety Reports
Employee Pension and Benefit Records
•10 Years
Cancelled Checks, Bank Statements and Reconciliations, All Settled Insurance Claims
• Permanently
Audit Reports, Tax Returns, Contracts, Trademark and Copyright material
Corporate Reports, Bylaws, Minutes of Meetings, Stock Reports and Dividend Payments, Partnership Investments, Buy-Sell Agreements, Property Records, Contributions, Distributions
Non-financial records (maintenance records, vendor lists, customer lists, etc.) will vary by business, but they should be maintained separately from your financial records and kept for as long as you need them.
