Guide to Record Retention for Auto Dealers

1 PeriodAccountingAudit recordsPermanentlyAccounts receivable or payable ledger7 yearsBank statements and reconciliations7 yearsCanceled checks payroll and general7 yearsCanceled Checks for purchase of assets should be filed with asset records5 years after disposition of assetCanceled Checks important papers (taxes, special contracts, stock bookPermanentlyCash disbursement journal7 yearsCash received journal7 yearsExpense reports7 yearsExpense ledger7 yearsFinancial statements (retain permanently of no audit reports)7 yearsGeneral ledger and journalPermanentlyInterdepartmental sales journal4 yearsInventory records-annual only7 yearsNew car sales journal7 yearsNotes receivable ledger (after repayment))

2 7 yearsParts, accessories , and service sales journals7 yearsPayroll earnings records4 yearsPayroll journal4 yearsPayroll time cards4 yearsPetty cash vouchers3 yearsPetty cash summary envelope3 yearsPrepaid and accrued expenses journal3 yearsSubsidiary ledger7 yearsTrial balances7 yearsVouchers-vendors, employees7 yearsGuide to Record Retention for Auto DealersYou can rely on a reasonable Record Retention policy such as this one if you have thrown away records which are later requested of you. However, in order to use the policy as a defense, you should exercise the policy and discard documents on a regular (at least yearly)

3 | 2017 CliftonLarsonAllen LLP WEALTH ADVISORY | OUTSOURCING | AUDIT, TAX, AND CONSULTINGI nvestment advisory services are offered through CliftonLarsonAllen Wealth Advisors, LLC, an SEC-registered investment PeriodCorporateArticles, by-laws, minutes, other corporatePermanentlyCorrespondenceGenera l 3 yearsLegal and taxPermanentlyOperationsAccident reports7 yearsBills of lading7 yearsBuyer s Guide -used car label*No requirement*Car invoices*6 yearsCar purchase orders*7 yearsCredit applications-denied*2 yearsCredit applications-approved*No requirementCustomer files*7 years Employment applications, terminated and not hired3 yearsEmployment applications, hired3 years past terminationInsurance policies, expired4 yearsInternal repair orders*3 yearsOdometer statements*5 yearsOSHA records6 yearsPersonnel files.

4 Closed6 years after terminationPurchase orders6 yearsRepair estimates9 monthsRepair order2 yearsRetail installment contract, assigned*10 yearsRetail installment contract, not assigned*7 years past expirationSales invoices6 yearsService contracts/extended warranties*7 years past expirationShipping and receiving reports4 years Underground storage tanks testing results and DNR correspondencePermanentlyUniform hazardous waste manifests3 yearsTaxesForm 8300-$10,000 cash reporting form5 yearsIncome tax returns, and statePermanentlyIncome tax returns, related work papers5 yearsIRS audit resultsPermanentlyUnemployment tax returns, and state and related work papers4 yearsWithholding tax returns, and state and related work papers4 yearsWithholding tax statements4 years*These items would ordinarily be in the car deal jacket.

5 Each item has its own Retention requirement. However, unless you want to strip the file, keep the car deal for 10 years. Even then, contracts which are performed over time, for example, retail installment contracts (if you are carrying the financing, not those that are assigned) and service contracts, should be kept for 10 years past their Used Car Buyers Guide is not technically required to be kept. However, if you don t keep a signed copy, it will be difficult to prove that your customer received provides this list for general information purposes. This is not legal advice, which CLA cannot provide.

6 It does not create any client, advisory, fiduciary, or other professional relationship between you and CLA. It should not be considered a substitute for your independent investigation, sound business judgment, and appropriate legal advice. You should consult with a legal advisor familiar with your particular factual situation and state law for advice or service concerning any specific matters.