As businesses age, so do the trails of documents following them. The longer the trail, the more costly it becomes to store these files. Losing these documents might expose you to legal liabilities.

Document retention is one of the hard parts of running a business. In some scenarios, you might even end up keeping files for 7 years. Folderit can help you address both the storage and retention problem. 

Folderit for Keeping files for 7 years

Folderit, by default, will store your files till the end of time. However, if you want to put an expiry on a file, or entire folder, Folderit can accommodate that for you. You can set up a timer, the end of which the end of which can either send designated files/folders to the recycle bin, or delete them permanently (depending on how you configure it). 

Keeping in mind, in certain situations you might want to retain some files/folders and discard the others, to that end, you can set up an expiry for each item individually. 

In certain legal scenarios, like taxation, or contracts, you might be required to retain documents for up to 7 years. Or, you might be keeping files for 6 years, refer to the table for a list of retention requirements as per IRS, CPA, FDIC, and other governing body’s policies. Please note, that any number with an * means the retention period starts only after the termination, disposal, expiration of the contract/item. 

Folderit is safe and secure for keeping business documents

In some scenarios, while retention is required, making the file available for open viewing might not make good business sense. To ensure that your stored content is under strict lock and key, all your folder access is protected under 256-bit bank-level encryption and all online transactions take place under Secure SSL encryption. So, you can be confident that your content is safe from any unauthorized access. 

Moreover, you might even want to limit how much access your own teams have to your documents, e.g. we don’t need IT to have access to Tax documents. This distinction can be enforced through permissions access. You can limit how much access which user has to how much of your files/folders. 

Say, if someone in finance needs to refer to tax documents without changing them, they can have read-only access. Meanwhile, documents that are not relevant to certain users can be set up that it never even appears in their view. 

Enforce an internal document retention policy

Other than legal issues, there might be a need within a business to set up an internal document retention policy. For example, your communications, like email, access audit trails (available natively in Folderit), minutes of the meetings, memos, etc. all need to be kept track of for a certain time. You can set it up such that this content is retained for a certain amount of time and then discarded afterwards. 


Whether you are keeping files for 7 years, or you are keeping files for 6 years, whatever the timeline for retention, Folderit can keep your content for your as long as you need and then promptly help you discard it as soon as you want. 

How long to keeep business files?

Depends on the regulations of the country you’re in but very often they look like this:

BUSINESS DOCUMENTS Years of retention
General Correspondence6*
License, traffic and purchase  (correspondence)6
Mortgages and note agreements6*
Patents Permanent Production (correspondence)8

FINANCIAL DOCUMENTS Years of retention
Auditors’ reportsPermanent
Bank debt deduction7
Bank deposit slips, reconciliations, statements4
Bills of lading4
Checks – cancelled4
Contracts – purchase and sales4*
Credit memos4
Depreciation records4*
Employee expense reports4
Employee payroll records (W2, W-4,  annual earnings records, etc.)6*
Financial statements – annualPermanent
Financial statements – interim4
Freight bills4
Internal reports (work orders, sales reports, production reports)4
Inventory lists4
Invoices – sales and cash register  receipts, merchandise purchases4
Invoices – purchases  (permanent assets)4*
General ledger Permanent
General, cash receipts, cash disbursement, and purchase journalsPermanent
Payroll journal4
Subsidiary ledgers (accounts receivable, accounts payable, etc.)6
Time cards4
Worthless securities7

INSURANCE DOCUMENTS Years of retention
Accident reports6
Claims – after settlement10
Fire inspection reports6
Group disability reports8
Policies – all types – expired4
Insurance policies6*
Safety reports8
Settled insurance claims4*

PERSONNELYears of retention
Attendance records7
COBRA records4
Contracts – expired6
Dental benefits5
Daily time reports6
Disability and sick benefit records6
Employment applications – not hired3
Employee benefit plans2*
Employee medical history7
Medical benefits7
OSHA logs6
Performance record – after termination7
Personnel files – terminated7*
Withholding tax statements6

PURCHASING AND SALES Years of retention
Purchase orders7
Sales contracts3
Sales invoices3

TAX DOCUMENTSYears of retention
Payroll tax returns4
Pension/profit-sharing  informational returnsPermanent
Sales and use tax returns Permanent
Tax returns and cancelled checks (federal, state and local) Permanent

Export declarations4
Freight bills4
Shipping and receiving reports4
Waybills and bills of lading4