{"id":6023,"date":"2024-10-23T18:08:00","date_gmt":"2024-10-23T12:38:00","guid":{"rendered":"https:\/\/www.complianceprime.com\/blog\/?p=6023"},"modified":"2024-10-17T15:14:51","modified_gmt":"2024-10-17T09:44:51","slug":"how-long-should-you-keep-financial-statements","status":"publish","type":"post","link":"https:\/\/www.complianceprime.com\/blog\/2024\/10\/23\/how-long-should-you-keep-financial-statements\/","title":{"rendered":"How long should you keep financial statements?"},"content":{"rendered":"\n<p>How long you should keep <a href=\"https:\/\/www.complianceprime.com\/industry\/188\/bfsi\">financial statements<\/a> depends on the type of document and its importance for tax, legal, or personal reference purposes.&nbsp;<\/p>\n\n\n\n<p>Here is a general guide for how long you should retain different types of financial documents:<\/p>\n\n\n\n<div style=\"color:#0E1851;margin-top:20px;font-size:28px;font-weight:bold;\">Related Webinars<\/div><div style=\"width:100%;height:auto;overflow:hidden;overflow-x:auto;margin:20px 0;\"><div style=\"width:calc(3 * 260px);\"><div style=\"width:250px;height:350px;background-color:#D2E0FF;background:url(https:\/\/www.complianceprime.com\/assets\/images\/wdt-back.png);background-repeat:no-repeat;background-size:cover;border-radius:10px;margin-right:10px;float:left;text-align:center;padding:25px 10px 0 10px;cursor:pointer;\" onclick=\"location.href='https:\/\/www.complianceprime.com\/details\/1737\/payroll-record-keeping?utm_source=cp_blog'\"><img decoding=\"async\" style=\"width:135px;height:135px;border-radius:50%;border:2px solid #2B58B5;padding:3px;\" src=\"https:\/\/www.complianceprime.com\/image.php?src=https:\/\/www.complianceprime.com\/uploads\/img_upload\/1690210566_ddeafec58b7fab473c74.png&w=200&h=200&zc=1&s=1\" alt=\"Speaker\"><div style=\"color:#0E1851;margin-top:5px;font-size:18px;font-weight:bold;line-height:22px;max-height:65px;overflow:hidden;\">Payroll Record Keeping: Who Requires What, for How Long and in What Format<\/div><div style=\"clear:both;\"><\/div><div style=\"margin:10px auto 0 auto;display:inline-block;\"><div style=\"width:20px;float:left;\"><svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 448 512\" id=\"IconChangeColor\" height=\"16\" width=\"16\"><path d=\"M160 32V64H288V32C288 14.33 302.3 0 320 0C337.7 0 352 14.33 352 32V64H400C426.5 64 448 85.49 448 112V160H0V112C0 85.49 21.49 64 48 64H96V32C96 14.33 110.3 0 128 0C145.7 0 160 14.33 160 32zM0 192H448V464C448 490.5 426.5 512 400 512H48C21.49 512 0 490.5 0 464V192zM64 304C64 312.8 71.16 320 80 320H112C120.8 320 128 312.8 128 304V272C128 263.2 120.8 256 112 256H80C71.16 256 64 263.2 64 272V304zM192 304C192 312.8 199.2 320 208 320H240C248.8 320 256 312.8 256 304V272C256 263.2 248.8 256 240 256H208C199.2 256 192 263.2 192 272V304zM336 256C327.2 256 320 263.2 320 272V304C320 312.8 327.2 320 336 320H368C376.8 320 384 312.8 384 304V272C384 263.2 376.8 256 368 256H336zM64 432C64 440.8 71.16 448 80 448H112C120.8 448 128 440.8 128 432V400C128 391.2 120.8 384 112 384H80C71.16 384 64 391.2 64 400V432zM208 384C199.2 384 192 391.2 192 400V432C192 440.8 199.2 448 208 448H240C248.8 448 256 440.8 256 432V400C256 391.2 248.8 384 240 384H208zM320 432C320 440.8 327.2 448 336 448H368C376.8 448 384 440.8 384 432V400C384 391.2 376.8 384 368 384H336C327.2 384 320 391.2 320 400V432z\" id=\"mainIconPathAttribute\" stroke-width=\"1\" stroke=\"#ff0000\" filter=\"url(#shadow)\" fill=\"#FB0351\"><\/path><filter id=\"shadow\"><feDropShadow id=\"shadowValue\" stdDeviation=\".5\" dx=\"0\" dy=\"0\" flood-color=\"black\"><\/feDropShadow><\/filter><filter id=\"shadow\"><feDropShadow id=\"shadowValue\" stdDeviation=\".5\" dx=\"0\" dy=\"0\" flood-color=\"black\"><\/feDropShadow><\/filter><\/svg><\/div><div style=\"float:left;margin-left:5px;font-size:12px;font-weight:bold;color:#FB0351;\">May 12th 2026 @ 01:00 PM ET<\/div><div style=\"clear:both;\"><\/div><\/div><div style=\"font-size:12px;color:#2B58B5;margin-top:-10px;\"><strong>Speaker: <\/strong>Vicki M. Lambert, CPP<\/div><div style=\"width:120px;text-transform:uppercase;font-size:12px;color:#FB0351;border:2px solid #FB0351;border-radius:30px;padding:1px 5px;margin:10px auto;\">Learn More<\/div><\/div><div style=\"width:250px;height:350px;background-color:#D2E0FF;background:url(https:\/\/www.complianceprime.com\/assets\/images\/wdt-back.png);background-repeat:no-repeat;background-size:cover;border-radius:10px;margin-right:10px;float:left;text-align:center;padding:25px 10px 0 10px;cursor:pointer;\" onclick=\"location.href='https:\/\/www.complianceprime.com\/details\/1773\/sfr-returns-2026?utm_source=cp_blog'\"><img decoding=\"async\" style=\"width:135px;height:135px;border-radius:50%;border:2px solid #2B58B5;padding:3px;\" src=\"https:\/\/www.complianceprime.com\/image.php?src=https:\/\/www.complianceprime.com\/uploads\/img_upload\/1769800299_6ffeb373912f0847a09a.jpg&w=200&h=200&zc=1&s=1\" alt=\"Speaker\"><div style=\"color:#0E1851;margin-top:5px;font-size:18px;font-weight:bold;line-height:22px;max-height:65px;overflow:hidden;\">SFR Returns-What to do when the IRS files a Tax Return for Your Client AKA a Substitute Filed Return<\/div><div style=\"clear:both;\"><\/div><div style=\"margin:10px auto 0 auto;display:inline-block;\"><div style=\"width:20px;float:left;\"><svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 448 512\" id=\"IconChangeColor\" height=\"16\" width=\"16\"><path d=\"M160 32V64H288V32C288 14.33 302.3 0 320 0C337.7 0 352 14.33 352 32V64H400C426.5 64 448 85.49 448 112V160H0V112C0 85.49 21.49 64 48 64H96V32C96 14.33 110.3 0 128 0C145.7 0 160 14.33 160 32zM0 192H448V464C448 490.5 426.5 512 400 512H48C21.49 512 0 490.5 0 464V192zM64 304C64 312.8 71.16 320 80 320H112C120.8 320 128 312.8 128 304V272C128 263.2 120.8 256 112 256H80C71.16 256 64 263.2 64 272V304zM192 304C192 312.8 199.2 320 208 320H240C248.8 320 256 312.8 256 304V272C256 263.2 248.8 256 240 256H208C199.2 256 192 263.2 192 272V304zM336 256C327.2 256 320 263.2 320 272V304C320 312.8 327.2 320 336 320H368C376.8 320 384 312.8 384 304V272C384 263.2 376.8 256 368 256H336zM64 432C64 440.8 71.16 448 80 448H112C120.8 448 128 440.8 128 432V400C128 391.2 120.8 384 112 384H80C71.16 384 64 391.2 64 400V432zM208 384C199.2 384 192 391.2 192 400V432C192 440.8 199.2 448 208 448H240C248.8 448 256 440.8 256 432V400C256 391.2 248.8 384 240 384H208zM320 432C320 440.8 327.2 448 336 448H368C376.8 448 384 440.8 384 432V400C384 391.2 376.8 384 368 384H336C327.2 384 320 391.2 320 400V432z\" id=\"mainIconPathAttribute\" stroke-width=\"1\" stroke=\"#ff0000\" filter=\"url(#shadow)\" fill=\"#FB0351\"><\/path><filter id=\"shadow\"><feDropShadow id=\"shadowValue\" stdDeviation=\".5\" dx=\"0\" dy=\"0\" flood-color=\"black\"><\/feDropShadow><\/filter><filter id=\"shadow\"><feDropShadow id=\"shadowValue\" stdDeviation=\".5\" dx=\"0\" dy=\"0\" flood-color=\"black\"><\/feDropShadow><\/filter><\/svg><\/div><div style=\"float:left;margin-left:5px;font-size:12px;font-weight:bold;color:#FB0351;\">May 13th 2026 @ 01:00 PM ET<\/div><div style=\"clear:both;\"><\/div><\/div><div style=\"font-size:12px;color:#2B58B5;margin-top:-10px;\"><strong>Speaker: <\/strong>Charles K. Montecino, CPA, CGMA, CTRS<\/div><div style=\"width:120px;text-transform:uppercase;font-size:12px;color:#FB0351;border:2px solid #FB0351;border-radius:30px;padding:1px 5px;margin:10px auto;\">Learn More<\/div><\/div><div style=\"width:250px;height:350px;background-color:#D2E0FF;background:url(https:\/\/www.complianceprime.com\/assets\/images\/wdt-back.png);background-repeat:no-repeat;background-size:cover;border-radius:10px;margin-right:10px;float:left;text-align:center;padding:25px 10px 0 10px;cursor:pointer;\" onclick=\"location.href='https:\/\/www.complianceprime.com\/details\/1818\/supplemental-pay-2026?utm_source=cp_blog'\"><img decoding=\"async\" style=\"width:135px;height:135px;border-radius:50%;border:2px solid #2B58B5;padding:3px;\" src=\"https:\/\/www.complianceprime.com\/image.php?src=https:\/\/www.complianceprime.com\/uploads\/img_upload\/38f0e7d922a183e06e18edf9f8fd871b.jpg&w=200&h=200&zc=1&s=1\" alt=\"Speaker\"><div style=\"color:#0E1851;margin-top:5px;font-size:18px;font-weight:bold;line-height:22px;max-height:65px;overflow:hidden;\">Mastering Supplemental Pay: Advanced Withholding Rules & Compliance<\/div><div style=\"clear:both;\"><\/div><div style=\"margin:10px auto 0 auto;display:inline-block;\"><div style=\"width:20px;float:left;\"><svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 448 512\" id=\"IconChangeColor\" height=\"16\" width=\"16\"><path d=\"M160 32V64H288V32C288 14.33 302.3 0 320 0C337.7 0 352 14.33 352 32V64H400C426.5 64 448 85.49 448 112V160H0V112C0 85.49 21.49 64 48 64H96V32C96 14.33 110.3 0 128 0C145.7 0 160 14.33 160 32zM0 192H448V464C448 490.5 426.5 512 400 512H48C21.49 512 0 490.5 0 464V192zM64 304C64 312.8 71.16 320 80 320H112C120.8 320 128 312.8 128 304V272C128 263.2 120.8 256 112 256H80C71.16 256 64 263.2 64 272V304zM192 304C192 312.8 199.2 320 208 320H240C248.8 320 256 312.8 256 304V272C256 263.2 248.8 256 240 256H208C199.2 256 192 263.2 192 272V304zM336 256C327.2 256 320 263.2 320 272V304C320 312.8 327.2 320 336 320H368C376.8 320 384 312.8 384 304V272C384 263.2 376.8 256 368 256H336zM64 432C64 440.8 71.16 448 80 448H112C120.8 448 128 440.8 128 432V400C128 391.2 120.8 384 112 384H80C71.16 384 64 391.2 64 400V432zM208 384C199.2 384 192 391.2 192 400V432C192 440.8 199.2 448 208 448H240C248.8 448 256 440.8 256 432V400C256 391.2 248.8 384 240 384H208zM320 432C320 440.8 327.2 448 336 448H368C376.8 448 384 440.8 384 432V400C384 391.2 376.8 384 368 384H336C327.2 384 320 391.2 320 400V432z\" id=\"mainIconPathAttribute\" stroke-width=\"1\" stroke=\"#ff0000\" filter=\"url(#shadow)\" fill=\"#FB0351\"><\/path><filter id=\"shadow\"><feDropShadow id=\"shadowValue\" stdDeviation=\".5\" dx=\"0\" dy=\"0\" flood-color=\"black\"><\/feDropShadow><\/filter><filter id=\"shadow\"><feDropShadow id=\"shadowValue\" stdDeviation=\".5\" dx=\"0\" dy=\"0\" flood-color=\"black\"><\/feDropShadow><\/filter><\/svg><\/div><div style=\"float:left;margin-left:5px;font-size:12px;font-weight:bold;color:#FB0351;\">May 21st 2026 @ 01:00 PM ET<\/div><div style=\"clear:both;\"><\/div><\/div><div style=\"font-size:12px;color:#2B58B5;margin-top:-10px;\"><strong>Speaker: <\/strong>Patrick A. Haggerty, EA<\/div><div style=\"width:120px;text-transform:uppercase;font-size:12px;color:#FB0351;border:2px solid #FB0351;border-radius:30px;padding:1px 5px;margin:10px auto;\">Learn More<\/div><\/div><\/div><\/div>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>1. Bank Statements<\/strong><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Retention Period<\/strong>: 1 year<\/li>\n\n\n\n<li><strong>Reason<\/strong>: Keep bank statements for at least 12 months to reconcile your accounts and check for any errors or discrepancies. After that, if you\u2019ve confirmed everything is correct, they can be discarded, but if they pertain to taxes, keep them for longer (typically 7 years).<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>2. Credit Card Statements<\/strong><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Retention Period<\/strong>: 1 year, unless needed for tax purposes.<\/li>\n\n\n\n<li><strong>Reason<\/strong>: Hold onto credit card statements for at least a year to verify purchases and ensure there are no fraudulent charges. If the statement includes expenses for taxes, hold onto it for 7 years.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>3. Tax Returns and Related Documents<\/strong><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Retention Period<\/strong>: 7 years<\/li>\n\n\n\n<li><strong>Reason<\/strong>: The IRS generally has a 3-year statute of limitations for <a href=\"https:\/\/www.complianceprime.com\/blog\/2024\/05\/12\/how-far-back-can-the-irs-audit-you\/\">auditing your tax return<\/a>, but if you underreported your income by more than 25%, they can go back 6 years. It\u2019s recommended to keep tax returns and all supporting documents for 7 years just to be safe.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>4. Pay Stubs<\/strong><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Retention Period<\/strong>: 1 year (until you receive your W-2 or other annual tax documents).<\/li>\n\n\n\n<li><strong>Reason<\/strong>: Keep your <a href=\"https:\/\/www.complianceprime.com\/blog\/2024\/01\/17\/what-information-should-be-included-in-the-paycheck-stub\/\">pay stubs<\/a> to compare with your W-2 at the end of the year. Once confirmed, you can discard them unless needed for tax purposes.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>5. Retirement Account Statements (401(k), IRA)<\/strong><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Retention Period<\/strong>: Keep annual statements permanently, discard quarterly statements after reconciling with the annual statement.<\/li>\n\n\n\n<li><strong>Reason<\/strong>: The annual statements provide a summary of your contributions and account performance, which is important for long-term tracking and tax reporting.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>6. Investment Statements (Non-Retirement Accounts)<\/strong><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Retention Period<\/strong>: 7 years<\/li>\n\n\n\n<li><strong>Reason<\/strong>: Keep monthly or quarterly statements until you receive your annual statement, then keep the annual statement for tax purposes and investment performance tracking.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>7. Mortgage Statements and Related Documents<\/strong><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Retention Period<\/strong>: Keep statements until the loan is paid off, then keep the payoff notice permanently.<\/li>\n\n\n\n<li><strong>Reason<\/strong>: It\u2019s important to retain documents proving your payment history and the mortgage payoff for potential future reference, like when selling the property.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>8. Utility Bills<\/strong><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Retention Period<\/strong>: 1 year, unless needed for tax deductions.<\/li>\n\n\n\n<li><strong>Reason<\/strong>: Utility bills can generally be discarded after confirming payment, but if they are used as deductions on your tax return (such as for home offices), keep them for 7 years.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>9. Receipts for Major Purchases<\/strong><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Retention Period<\/strong>: Keep for as long as you own the item, or until the warranty expires.<\/li>\n\n\n\n<li><strong>Reason<\/strong>: Receipts for major purchases, such as appliances or electronics, are essential for warranty claims, returns, or insurance.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>10. Loan Documents<\/strong><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Retention Period<\/strong>: Keep until the loan is fully paid off, then retain payoff notices permanently.<\/li>\n\n\n\n<li><strong>Reason<\/strong>: Keep loan statements and payment history in case you need proof of payments or settlement.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>11. Property Records (Real Estate)<\/strong><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Retention Period<\/strong>: Keep for at least 7 years after selling the property.<\/li>\n\n\n\n<li><strong>Reason<\/strong>: You need property records, including proof of purchase, improvements, and the final sale for tax purposes. These documents are essential for calculating capital gains taxes when selling the property.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Conclusion<\/strong><\/h3>\n\n\n\n<p>As a general rule, documents related to taxes should be kept for at least 7 years. For items like receipts, pay stubs, and utility bills, shorter retention periods are typically fine unless they are needed for tax or warranty purposes. For long-term records like mortgage documents, retirement accounts, and real estate records, keep them permanently or until the debt is fully satisfied. Proper <a href=\"https:\/\/www.complianceprime.com\/blog\/2022\/12\/29\/why-is-payroll-record-keeping-important\/\">record-keeping<\/a> helps protect you in the event of audits, disputes, or claims.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>How long you should keep financial statements depends on the type of document and its importance for tax, legal, or personal reference purposes.&nbsp; Here is a general guide for how&hellip;<\/p>\n","protected":false},"author":3,"featured_media":6024,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_links_to":"","_links_to_target":""},"categories":[55],"tags":[],"class_list":["post-6023","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-payroll-and-accounting"],"post_mailing_queue_ids":[],"_links":{"self":[{"href":"https:\/\/www.complianceprime.com\/blog\/wp-json\/wp\/v2\/posts\/6023","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.complianceprime.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.complianceprime.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.complianceprime.com\/blog\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.complianceprime.com\/blog\/wp-json\/wp\/v2\/comments?post=6023"}],"version-history":[{"count":1,"href":"https:\/\/www.complianceprime.com\/blog\/wp-json\/wp\/v2\/posts\/6023\/revisions"}],"predecessor-version":[{"id":6025,"href":"https:\/\/www.complianceprime.com\/blog\/wp-json\/wp\/v2\/posts\/6023\/revisions\/6025"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.complianceprime.com\/blog\/wp-json\/wp\/v2\/media\/6024"}],"wp:attachment":[{"href":"https:\/\/www.complianceprime.com\/blog\/wp-json\/wp\/v2\/media?parent=6023"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.complianceprime.com\/blog\/wp-json\/wp\/v2\/categories?post=6023"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.complianceprime.com\/blog\/wp-json\/wp\/v2\/tags?post=6023"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}