When you start your business, or perhaps a few years in, it may dawn on you that knowing how long to maintain your different types of records becomes a bit of a mystery. Whether you are keeping them in a shoe-box or digitally in a cloud there are some rules that you should be aware of. This may sound mundane, but knowing whether you hold on to a particular record type for one year, two years or seemingly forever can save a lot of heartache or penalties when the auditor comes to call.
1) The Internal Revenue Service web page on the subject is:
2) For the more consciences accountant you may want to download the nearly 60 page handbook document from CA.ORG: http://www.documents.dgs.ca.gov/osp/calrim/RecordsRetentionHandbook.pdf
Either way, it is always wise to be informed.