Suggested Record Retention Guidelines Accounting Records   Bank deposit slips 4 years Bank reconciliations 7 years Bank statements 7 years Canceled checks 7 years Depreciation records 7 years (after disposal) Employee expense reports 7 years Employee payroll records 7 years (after termination) Insurance policies 7 years (after expiration) Invoices 7 years Mortgages & note agreements 7 years (after payoff) Personnel files 4 years (after termination) Time cards & time reports 4 years     Financial Reports   Auditors’ reports Permanent Annual financial statements Permanent Interim financial statements 4 years General ledgers Permanent Subsidiary ledgers 7 years     Tax Returns   Income & franchise tax returns Permanent Payroll tax returns 7 years Sales & use tax returns Permanent