How Long Should Sales Records Be Keep?
Documents and supporting documents related to sales should be kept for at least six years after the transaction has been completed. These documents should include a detailed daily record of cash and credit sales. Major purchases should be kept indefinitely unless the item is sold or the purchase was returned and refunded. Other bills should be kept until the bill has been cleared or until the shredding period has expired. Similarly, house records, tax records, and miscellaneous records should be maintained for six years after the sale. In addition, legal fees should be maintained for six years.
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Documents you should keep for longer
Most banks do not mail canceled checks back to customers, but you should save them for as long as possible. This is especially true if the canceled check is related to a charitable donation or a tax return. In addition, you should save canceled checks for as long as you own the item. For example, if you purchase a car, keep the bill as long as the warranty lasts.
Invoices and monthly statements are good examples of documents that you should keep for a longer period. These can be valuable for your financial future, but you should also know when to destroy them. Some of these documents contain personal information that can be used by identity thieves. These documents include credit card statements, bank statements, canceled checks, receipts, credit reports, insurance policies, and utility bills.
Bank statements should be kept for seven years, if possible. Monthly and quarterly statements are generally good to keep for a year or so after you receive them. However, you may need to keep them for a longer period if you made a long-term purchase or investment. Medical records and insurance information should be kept for several years as well.
Keeping a detailed daily record of all cash and credit sales
When running a business, keeping a detailed daily record of all cash and/or credit sales is essential for accounting purposes. It helps ensure greater accuracy when accounting for price changes. Additionally, a detailed sales day book helps you follow up with customers who are still anticipating cash. This is especially helpful for small businesses that rely on converting credit sales to cash.
