NEWS FROM BP&S

April 17 Barbeque
We had a great time on April 17. Most (but certainly not all) returns and extensions were complete; the food was good; the weather was fantastic. We enjoyed visiting with those folks who joined us. Next year, April 16.

Neil Jones
Congratulations to Neil Jones, who became the Firm’s newest licensed CPA this month!

Golf Report

The Firm entered two teams in USC’s Beta Alpha Psi Golf Tournament (BAP is the University’s accounting fraternity).

Tim Geyer and Joe Graham along with their two student team members shot a 73—way, way out of the running.

Ben Glenn and Tripp Petzel along with their student team member shot a 66 and finished 4th in the tournament. Congratulations.

Overall, the Student/Professional teams defeated the Professors.
 

Looking for Experienced Auditors

Due to continued strong growth in our audit and accounting practice, the Firm is looking for an audit senior with two to four years of recent, high quality audit experience.  Compensation will be commensurate with experience.  If you are interested (or know of someone who is interested), please e-mail your resume directly to Tom Pietras at tpietras@bpscpas.com.

TECHNICAL ISSUES

We are frequently asked how long business records should be kept. The following are some general guidelines regarding record retention:

1. Income tax returns, revenue agents’ reports, protests and court briefs and appeals:
   
   Retain indefinitely
    
2. Financial statements:
   
   Annual statements: Retain indefinitely
   Monthly statements used for internal purposes: Retain for 3 years
    
3. General books of account and magnetic tapes, disks and other machine-sensible data media used in automatic data processing:
   
   General ledger: Retain indefinitely
   General journal: Retain indefinitely
   Subsidiary ledgers: 3 years (some types may warrant longer retention)
   Cash books: Retain indefinitely, unless posted regularly to a general ledger
    
4. Bank statements:
   
   Canceled checks: 6 years, other than:
   Payroll checks: 6 years
   Dividend checks: 6 years
   Income tax payment checks: Retain indefinitely
   
   Bank reconciliations: 6 years
   Proofs of cash: 6 years
   Void checks: 6 years
   Check stubs: 6 years
   Corresponding check register tapes: 6 years
    
5. Sales records, including: sale invoices, monthly statements, remittance advices, accounts receivable, bad debts and invoices and other documents associated with customer billings such as credit memos, shipping papers, bills of lading and customers’ purchase orders: 6 years.
    
6. Purchase records, including: purchase orders, vouchers (authorizing payments to vendors), vendor invoices and receiving reports: 6 years
    
7. Travel and entertainment records, including account books, diaries, statements of expenses or similar records relating identification of the time, place, and the amount of each expenditure, corroborating evidence of the amount and business relationship of the individuals involved: 6 years.
    
8. Documents substantiating fixed asset additions, including: amounts and dates of additions or improvements, details related to retirements, depreciation policies and salvage value assigned to assets: Retain indefinitely.
    
9. Personnel and payroll records – Payments and reports to taxing authorities, including: federal income tax withholding, FICA contributions, unemployment taxes and worker’s compensation insurance: 4 years.
    
10. Corporate documents: Most of the information classified in this category, including certificate of incorporation, corporate charter, constitution and by laws, deeds and easements, stock, stock transfer and stockholder records, minutes of board of directors meetings, retirement and pension records, labor contracts and licenses, patents, trademark, and registration applications, is of permanent nature which should be retained indefinitely.

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