It’s a new year, which means it’s time to update your files and get rid of any old and unnecessary documents and make sure they are safely shredded. This can seem like an overwhelming process, but it doesn’t have to be with the right shredding company, like Patriot Shredding.
But before you go and get rid of all of your old documents, make sure that you are following the correct guidelines associated with your business. Some general rules of practice to go by, as stated by the IRS and other industry guidelines, are universal to most businesses, but it’s important to research your specific industry guidelines.
Some general guidelines for most businesses include:
Business Tax Returns & Financial Records:
It’s recommended to keep all business tax returns and supporting documentation for at least 7 years, in case the IRS finds an error and decides to audit. With financial records, some of them are recommended to be kept for 7 years, while others should be kept permanently. Invoices, expense reports, credit and bank account statements should all be kept for at least 7 years. Business ledgers, audit documents, budgets, and financial statements should be kept permanently.
Employee Tax Records & Human Resource Files:
Human Resource files are recommended to be kept at least 7 years after termination or 10 years if there is an injury on file. Employee Tax records can be kept for a minimum of 4 years, although we recommend 7 years as well.
Documents That Should Be Kept Permanently:
Documents that you want to retain permanently are major contracts, titles, articles of incorporation, deeds, etc.
It’s important to know what documents you should be keeping and for how long so you’re not holding onto an unnecessary number of documents. If you’re looking for more information about what your specific business industry might require for certain documents, check out this article.
If you’re looking for help with shredding documents you’re cleaning out, make sure to call Patriot Shredding. We have a local drop off location, so you can drop off all of your documents, or, for larger quantities of documents, we can schedule a time for one of our trucks to meet you at your business or home and help with all of your shredding needs. Contact us today to see how we can help your business!