Accounts how long to keep records

When you set up a limited company or limited liability partnership, you will be required by law to keep where applicable the following statutory records and make them available for public inspection at your registered office or SAIL address :. You may keep all or some of these records at your registered office, or you may choose an alternative location a SAIL address to keep some or all of these records and make them available for inspection; however, all records of a similar type must be kept together in the same location and you must tell HMRC which records are at which address.

Statutory registers should be kept for the life of your company or LLP. Minutes of meetings and copies of resolutions must be kept for a minimum of 10 years from the dates they are produced.

Every company and LLP must keep accurate financial and accounting records, regardless of whether the business is actively trading or dormant. These records should include, where applicable:.

As a general rule, however, you should keep all financial statements, accounting records and tax returns for at least 6 years. The law does not state how you must keep the majority of business and accounting records, but you will have to keep some original documents that show that tax has been deducted, for example: form P60 End of Year Certificates for PAYE. It is good practice to keep all original documents you receive. Check what you need to do. To help us improve GOV.

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Hide this message. Ownership Records, such as business formation documents, annual meeting minutes, by-laws, stock ledgers and property deeds, should be retained permanently. Accounting Services Records should be retained for a minimum of seven years.

Accountants, being a conservative bunch, will often recommend that you keep financial statements , check registers, profit and loss statements, budgets, general ledgers, cash books and audit reports permanently.

Operational Records, including bank account statements, credit card statements, canceled checks, cash receipts and check book stubs, follow the seven year rule. Subscribe to Email Updates. We do not provide tax services, including but not limited to tax preparation, tax law, tax compliance, tax filing, and tax planning services. Please consult your CPA and tax advisors for tax consulting. It all depends on the document and your business. Reasons for Retaining Business Records When you think about retaining records and documents, the first thing that probably comes to mind is an IRS audit.

Here are a few of them: Lenders whom you approach for financing might require income, sales history, and other documents. When you are negotiating with landlords, insurers, and other vendors, having a clear and written history of previous leases, insurance policies, and other contracts might strengthen your position.

If you decide to sell your business, potential buyers will want to review historical records as part of their due diligence. If you become involved in a dispute or lawsuit, you might need meeting minutes and written agreements to support your position. Which Records Should You Keep? The records and documents that businesses should have if they need to address most situations include: business formation documents tax returns and supporting documents employment records sales receipts business asset records ledgers and registers leases or mortgage documents shareholder meeting minutes bank and credit card statements licenses and permits insurance policies and records, and loan documents.

If you don't file a return at all, the IRS can come after your business at any time. Employment tax records include: employees' names, addresses, social security numbers, dates of employment, and occupation wages, annuities, and pensions paid to employees with dates of payment taxes withheld including FICA and Medicare records of tips and fringe benefits paid if applicable to your business, and documents for independent contractors.

What About Electronic Records? Business Formation. Choosing a Business Structure. Sole Proprietorships. Forming a Corporation. See All Business Formation Articles. Talk to a Lawyer Need help? Start here. Practice Area Please select