Blog - Helpful Hints
Keep up to date on the latest tax and accounting news and updates on the business.
Spring Cleaning - April 2020
I just recently sold my business of over 15 years and I am anxious to go through my files and get rid of years and years of files and documents I have been holding onto. And, being that this is Tax month, I felt this would be a good time to do a little research and figure out what I need to keep and what I can toss or shred. Spring time is a good time of year to get your house organized and with these helpful tips you can make the office clean up quickly and efficient. If you’re like me and you have several years of file cabinets and boxes full of old files, I can help you sort through, organize and set up a new clean and efficient filing system in no time. Please contact me and we can get started right away. In the meantime, this handy guide from the book, "1001 Timely Tips for Clutter Control", by Frank Cawood and Associates, "will help you know how long you should keep certain personal documents - and when it's OK to toss them." Happy Cleaning!
- Income tax returns and payment checks
- Retirement, IRA and pension records
- Investment Trade confirmations and investment records for stocks, bonds, and mutual funds
- Legal records
- Bills for big-ticket purchases - like furniture, jewelry, appliances, computers, cars, etc. (In case they are destroyed, stolen, or damaged)
- Home purchase and improvement records and receipts
- Important business correspondence
- CPA audit reports
Keep 7 years
- Documents that support your tax return figures such as bills and canceled checks
- Tax-related medical bills
- Tax-related sales receipts, utility records, and other tax-related bills
- Property records / builder contracts
- Accident reports and claims (even if settled)
Keep 4 years
- Credit Cards Statements
- Medical Bills (for insurance problems)
- Expired insurance policies
- Credit card receipts until you verify them on your statement
- ATM receipts until you verify them on your bank statement
- Car records until you no longer own the car
- Leases until seven years after they expire
- Pay stubs until you have verified them on your W-2
- Sales receipts until the warranty expires
- Warranties and instructions until you no longer own the product
- W-2 forms until Social Security benefits begin
Both laws and IRS rules are subject to change, so check with your accountant or attorney before tossing any legal or financial papers.
I hope you find this guide helpful. Please refer to the book, "1001 Timely Tips for Clutter Control", by Frank Cawood and Associates, for more details about how long you should keep personal documents and many more organizing tips for your home and office.
Again, if I can help you get organized, please feel free to contact me for a free quote.