How Long to Keep Documents

As a small business owner, I am constantly looking for ways to streamline. This includes the question of when is it ok to throw things away? With the year coming to a close, I’m now trying to get all of my records in order and ensure that I have what I need to have, and throw out anything that is no longer important after the year passes. Here are some general guidelines, as well as resources you can check out for further questions.

The guidelines below are not hard and fast rules, but rather a culmination of suggestions from multiple sources. You should determine your best action based upon your personal situation.

Note: If you are ever in doubt, consult with a financial professional.

Permanent Records

For any records which are to be kept indefinitely, make sure they are stored in a safe spot.

  • Birth/Death/Marriage certificates, adoption papers, etc.
  • Wills and Powers of Attorney
  • List of assets
  • Deeds, mortgages which have been paid off
  • Passports
  • Owner’s manuals for equipment and appliances (keep unless item is discarded, sold or given away)
  • Income tax returns, including the supporting documentation (W-2’s, 1099’s, etc.)
  • Retirement documents
  • Insurance policies, including home, auto, life, disability, health, etc.
  • Personal health records

Six Years or More

  • Bank statements (seven years)
  • Canceled checks
  • Credit card statements (seven years, if in relation to business expenses)
  • Receipts for home improvements (keep until six years after the home is sold)
  • Receipts for major purchases (keep until item is discarded, sold, given away or the item is no longer under warranty)
  • Tax return documents

Two to Five Years

  • Insurance documents (retain for four years after the policy has expired)

One Year or Less

  • Pay Stubs (discard after a year, once you have reconciled the totals with your W-2)
  • ATM, debit and credit card receipts (discard after reconciling with your bank or credit card statement – special situations may warrant keeping receipts longer, especially if it was a major purchase)
  • Utility bills (retain for a year, unless you need to keep them for business-related expenses)
  • Credit card statements (retain for a year, longer if you need for business expenses)

Additional Resources

Leave a comment