Good financial records are very important. We realize this when it is time to file taxes each year, when our business needs valuation, and when litigation becomes imminent. Yet, if you keep every piece of paper that comes across your desk, you will create too much clutter to function effectively. What should you keep and what should you throw out?

Keep the following documents in your permanent file:

• Records that relate to your home (mortgage, deeds, capital improvements).
• Documents showing non-deductible and deductible IRA contributions.
• Tax returns and checks, credit card information & other forms of payment used to pay taxes or to substantiate deductions.

The following documents should be kept for limited times:

• Accident reports/claims – 7 years
• Back-up tax paperwork – 10 years
• Bank reconciliations – 3 year rolling
• Bank statements – 3 years
• Brokerage statements – 3 Years
• Business Valuations – 10 years
• Contracts, notes and leases (expired) – 7 years
• Credit card statements – 3 year rolling
• Insurance policies (expired) – 3 years
• Mutual fund statements (after sold) – 10 years
• Paycheck stubs – 1 year

Once you have organized your office, you may realize that it is a good time to get a current business valuation, or you may have come across some inconsistencies in your documents and want to receive a professional appraisal of the situation.

Mr. Al Golden specializes in providing CFO and Controller Services, forensic accounting, comprehensive business valuation, and forensic accounting. He is a Certified Public Accountant (CPA), Certified Valuation Analyst (CVA), a Diplomat of the American Board of Forensic Accounting (DABFA), Certified in Financial Forensics (CFF), and is a member of the American Institute of Certified Public Accountants, the National Association of Certified Valuation Analysts, and the American College of Forensic Examiners.

A.M. Golden Accountancy Corporation offers a free initial consultation - To speak with Mr. Golden immediately, please call his direct line by dialing (760) 444-1913.  If you’d prefer, you may also send an email: al@amgolden.com