What Records Should You Keep

What business documents need to be kept and when can they be destroyed? Cathy Sexton, ownr of CSBS LLC (Creating Simple Business Solutions)(www.cs-bs.com), has come up with this handy checklist:
Business And Corporate Records—Basic List
3 years—Credit card statements, monthly financial and bank reconciliations
7 years—Accounts receivable and accounts payable records, inventory, purchase orders and sales records, property records/improvements
Life of document + 4 years—Insurance policies, lease payment records and minor contracts
Permanent—Bank statements, cancelled checks for important payments, fixed asset purchases, depreciation schedules, tax returns and related information, all corporate paperwork and major contracts
Employee Records—Basic List
3 years—employment applications
7 years—employee files, payroll and dividend checks, payroll records
Permanent—Benefit, retirement, pension and profit sharing plans