{"id":466,"date":"2010-04-04T16:21:48","date_gmt":"2010-04-04T20:21:48","guid":{"rendered":"http:\/\/www.solutions4childcare.com\/index\/?p=466"},"modified":"2020-08-26T00:05:23","modified_gmt":"2020-08-26T04:05:23","slug":"financial-records-what-to-keep-and-how-long","status":"publish","type":"post","link":"https:\/\/www.solutions4childcare.com\/index\/financial-records-what-to-keep-and-how-long\/","title":{"rendered":"Financial Records &#8211; What to Keep and How Long"},"content":{"rendered":"<p><img fetchpriority=\"high\" decoding=\"async\" class=\"alignleft size-medium wp-image-1208\" src=\"http:\/\/www.solutions4childcare.com\/index\/wp-content\/uploads\/2010\/04\/financial-records-medium-300x276.jpg\" alt=\"financial records medium\" width=\"300\" height=\"276\" srcset=\"https:\/\/www.solutions4childcare.com\/index\/wp-content\/uploads\/2010\/04\/financial-records-medium-300x276.jpg 300w, https:\/\/www.solutions4childcare.com\/index\/wp-content\/uploads\/2010\/04\/financial-records-medium.jpg 658w\" sizes=\"(max-width: 300px) 100vw, 300px\" \/>\u201cIf it wasn\u2019t for the \u201cpaperwork\u201d running a child care business would be more fun.\u201d\u00a0 Unfortunately, the IRS says you must keep records as longs as it may be necessary to support the income and deductions you reported on your business and personal tax return.\u00a0 And, of coursed, the length of time you have to keep this financial information also depends on how \u201chonest\u201d you were on you tax returns.\u00a0 If you file a fraudulent return, you must keep records indefinitely.<\/p>\n<p>The following table represents the standard time you should keep certain records.\u00a0 You will also want to consult with your CPA and other advisors to decide exactly how long is long enough.<\/p>\n<table style=\"height: 289px;\" border=\"0\" width=\"615\" cellspacing=\"0\" cellpadding=\"0\">\n<tbody>\n<tr>\n<td valign=\"bottom\" width=\"400\"><span style=\"color: #56a4d9;\"><strong>Type Record<\/strong><\/span><\/td>\n<td valign=\"bottom\" width=\"90\"><\/td>\n<td valign=\"bottom\" width=\"125\"><span style=\"color: #56a4d9;\"><strong>Time\u00a0 Period<\/strong><\/span><\/td>\n<\/tr>\n<tr>\n<td valign=\"bottom\" width=\"400\">Accounts Payable and Receivable Records<\/td>\n<td valign=\"bottom\" width=\"90\"><\/td>\n<td valign=\"bottom\" width=\"125\">3 to 5 years<\/td>\n<\/tr>\n<tr>\n<td valign=\"bottom\" width=\"400\">Profit and Loss Statement and Balance Sheet<\/td>\n<td valign=\"bottom\" width=\"90\"><\/td>\n<td valign=\"bottom\" width=\"125\">Forever<\/td>\n<\/tr>\n<tr>\n<td valign=\"bottom\" width=\"400\">Bank Statements<\/td>\n<td valign=\"bottom\" width=\"90\"><\/td>\n<td valign=\"bottom\" width=\"125\">3 to 5 years<\/td>\n<\/tr>\n<tr>\n<td valign=\"bottom\" width=\"400\">Corporate Reports &#8211; Contracts, Annual Reports<\/td>\n<td valign=\"bottom\" width=\"90\"><\/td>\n<td valign=\"bottom\" width=\"125\">Forever<\/td>\n<\/tr>\n<tr>\n<td valign=\"bottom\" width=\"400\">Constitutions, Bylaws, Incorporation Records<\/td>\n<td valign=\"bottom\" width=\"90\"><\/td>\n<td valign=\"bottom\" width=\"125\">Forever<\/td>\n<\/tr>\n<tr>\n<td colspan=\"2\" valign=\"bottom\" width=\"490\">Personnel Records- Health, Safety, Injury Claims<\/td>\n<td valign=\"bottom\" width=\"125\">Forever<\/td>\n<\/tr>\n<tr>\n<td valign=\"bottom\" width=\"400\">Applications, Employee Files, Payroll Records<\/td>\n<td valign=\"bottom\" width=\"90\"><\/td>\n<td valign=\"bottom\" width=\"125\">5 to 7<\/td>\n<\/tr>\n<tr>\n<td valign=\"bottom\" width=\"400\">Building Records &#8211; Deeds, Leases, Contracts<\/td>\n<td valign=\"bottom\" width=\"90\"><\/td>\n<td valign=\"bottom\" width=\"125\">Forever<\/td>\n<\/tr>\n<tr>\n<td valign=\"bottom\" width=\"400\">Building Maintenance, Repair,<\/td>\n<td valign=\"bottom\" width=\"90\"><\/td>\n<td valign=\"bottom\" width=\"125\">5 to 10 years<\/td>\n<\/tr>\n<tr>\n<td valign=\"bottom\" width=\"400\">Sales Tax Returns<\/td>\n<td valign=\"bottom\" width=\"90\"><\/td>\n<td valign=\"bottom\" width=\"125\">Forever<\/td>\n<\/tr>\n<tr>\n<td valign=\"bottom\" width=\"400\">Tax Returns<\/td>\n<td valign=\"bottom\" width=\"90\"><\/td>\n<td valign=\"bottom\" width=\"125\">Forever<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>Destroying records too soon could result in penalties, lost claims and lawsuits, or substantial cost to recreate.<\/p>\n<p>Donna S. Dailey<\/p>\n<p>\u00a9Solutions 4 Child Care<\/p>\n<p>\u201cIf it wasn\u2019t for the \u201cpaperwork\u201d running a child care business would be more fun.\u201d\u00a0 Unfortunately, the IRS says you must keep records as longs as it may be necessary to support the income and deductions you reported on your business and personal tax return.\u00a0 And, of coursed, the length of time you have to keep this financial information also depends on how \u201chonest\u201d you were on you tax returns.\u00a0 If you file a fraudulent return, you must keep records indefinitely.<\/p>\n<p>The following table represents the standard time you should keep certain records.\u00a0 You will also want to consult with your CPA and other advisors to decide exactly how long is long enough.<\/p>\n<table border=\"0\" width=\"615\" cellspacing=\"0\" cellpadding=\"0\">\n<tbody>\n<tr>\n<td valign=\"bottom\" width=\"400\"><strong>Type Record<\/strong><\/td>\n<td valign=\"bottom\" width=\"90\"><\/td>\n<td valign=\"bottom\" width=\"125\"><strong>Time\u00a0 Period<\/strong><\/td>\n<\/tr>\n<tr>\n<td valign=\"bottom\" width=\"400\">Accounts Payable and Receivable Records<\/td>\n<td valign=\"bottom\" width=\"90\"><\/td>\n<td valign=\"bottom\" width=\"125\">3 to 5 years<\/td>\n<\/tr>\n<tr>\n<td valign=\"bottom\" width=\"400\">Profit and Loss Statement and Balance Sheet<\/td>\n<td valign=\"bottom\" width=\"90\"><\/td>\n<td valign=\"bottom\" width=\"125\">Forever<\/td>\n<\/tr>\n<tr>\n<td valign=\"bottom\" width=\"400\">Bank Statements<\/td>\n<td valign=\"bottom\" width=\"90\"><\/td>\n<td valign=\"bottom\" width=\"125\">3 to 5 years<\/td>\n<\/tr>\n<tr>\n<td valign=\"bottom\" width=\"400\">Corporate Reports &#8211; Contracts, Annual Reports<\/td>\n<td valign=\"bottom\" width=\"90\"><\/td>\n<td valign=\"bottom\" width=\"125\">Forever<\/td>\n<\/tr>\n<tr>\n<td valign=\"bottom\" width=\"400\">Constitutions, Bylaws, Incorporation Records<\/td>\n<td valign=\"bottom\" width=\"90\"><\/td>\n<td valign=\"bottom\" width=\"125\">Forever<\/td>\n<\/tr>\n<tr>\n<td colspan=\"2\" valign=\"bottom\" width=\"490\">Personnel Records- Health, Safety, Injury Claims<\/td>\n<td valign=\"bottom\" width=\"125\">Forever<\/td>\n<\/tr>\n<tr>\n<td valign=\"bottom\" width=\"400\">Applications, Employee Files, Payroll Records<\/td>\n<td valign=\"bottom\" width=\"90\"><\/td>\n<td valign=\"bottom\" width=\"125\">5 to 7<\/td>\n<\/tr>\n<tr>\n<td valign=\"bottom\" width=\"400\">Building Records &#8211; Deeds, Leases, Contracts<\/td>\n<td valign=\"bottom\" width=\"90\"><\/td>\n<td valign=\"bottom\" width=\"125\">Forever<\/td>\n<\/tr>\n<tr>\n<td valign=\"bottom\" width=\"400\">Building Maintenance, Repair,<\/td>\n<td valign=\"bottom\" width=\"90\"><\/td>\n<td valign=\"bottom\" width=\"125\">5 to 10 years<\/td>\n<\/tr>\n<tr>\n<td valign=\"bottom\" width=\"400\">Sales Tax Returns<\/td>\n<td valign=\"bottom\" width=\"90\"><\/td>\n<td valign=\"bottom\" width=\"125\">Forever<\/td>\n<\/tr>\n<tr>\n<td valign=\"bottom\" width=\"400\">Tax Returns<\/td>\n<td valign=\"bottom\" width=\"90\"><\/td>\n<td valign=\"bottom\" width=\"125\">Forever<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>Destroying records too soon could result in penalties, lost claims and lawsuits, or substantial cost to recreate.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>\u201cIf it wasn\u2019t for the \u201cpaperwork\u201d running a child care business would be more fun.\u201d\u00a0 Unfortunately, the IRS says you must keep records as longs as it may be necessary to support the income and deductions you reported on your business and personal tax return.\u00a0 And, of coursed, the length of time you have to&hellip;<\/p>\n","protected":false},"author":1,"featured_media":1208,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[56],"tags":[],"class_list":["post-466","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-child-care-business-operations","category-56","description-off"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.6 (Yoast SEO v27.6) - 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Since 1995, Donna Dailey, the founder of Solutions 4 Child Care, has worked closely with child care owners to increase revenues, decrease expenses, and in turn increase the profitability and value of their child care business.","url":"https:\/\/www.solutions4childcare.com\/index\/author\/donnad\/"}]}},"rttpg_featured_image_url":{"full":["https:\/\/www.solutions4childcare.com\/index\/wp-content\/uploads\/2010\/04\/financial-records-medium.jpg",658,606,false],"landscape":["https:\/\/www.solutions4childcare.com\/index\/wp-content\/uploads\/2010\/04\/financial-records-medium.jpg",658,606,false],"portraits":["https:\/\/www.solutions4childcare.com\/index\/wp-content\/uploads\/2010\/04\/financial-records-medium.jpg",658,606,false],"thumbnail":["https:\/\/www.solutions4childcare.com\/index\/wp-content\/uploads\/2010\/04\/financial-records-medium-150x150.jpg",150,150,true],"medium":["https:\/\/www.solutions4childcare.com\/index\/wp-content\/uploads\/2010\/04\/financial-records-medium-300x276.jpg",300,276,true],"large":["https:\/\/www.solutions4childcare.com\/index\/wp-content\/uploads\/2010\/04\/financial-records-medium.jpg",658,606,false],"1536x1536":["https:\/\/www.solutions4childcare.com\/index\/wp-content\/uploads\/2010\/04\/financial-records-medium.jpg",658,606,false],"2048x2048":["https:\/\/www.solutions4childcare.com\/index\/wp-content\/uploads\/2010\/04\/financial-records-medium.jpg",658,606,false]},"rttpg_author":{"display_name":"Donna Dailey","author_link":"https:\/\/www.solutions4childcare.com\/index\/author\/donnad\/"},"rttpg_comment":0,"rttpg_category":"<a href=\"https:\/\/www.solutions4childcare.com\/index\/category\/child-care-business-operations\/\" rel=\"category tag\">Child Care Business Operations<\/a>","rttpg_excerpt":"\u201cIf it wasn\u2019t for the \u201cpaperwork\u201d running a child care business would be more fun.\u201d\u00a0 Unfortunately, the IRS says you must keep records as longs as it may be necessary to support the income and deductions you reported on your business and personal tax return.\u00a0 And, of coursed, the length of time you have to&hellip;","_links":{"self":[{"href":"https:\/\/www.solutions4childcare.com\/index\/wp-json\/wp\/v2\/posts\/466","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.solutions4childcare.com\/index\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.solutions4childcare.com\/index\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.solutions4childcare.com\/index\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.solutions4childcare.com\/index\/wp-json\/wp\/v2\/comments?post=466"}],"version-history":[{"count":5,"href":"https:\/\/www.solutions4childcare.com\/index\/wp-json\/wp\/v2\/posts\/466\/revisions"}],"predecessor-version":[{"id":9554,"href":"https:\/\/www.solutions4childcare.com\/index\/wp-json\/wp\/v2\/posts\/466\/revisions\/9554"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.solutions4childcare.com\/index\/wp-json\/wp\/v2\/media\/1208"}],"wp:attachment":[{"href":"https:\/\/www.solutions4childcare.com\/index\/wp-json\/wp\/v2\/media?parent=466"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.solutions4childcare.com\/index\/wp-json\/wp\/v2\/categories?post=466"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.solutions4childcare.com\/index\/wp-json\/wp\/v2\/tags?post=466"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}