According to general rules, how long should accounts payable invoices be retained?

The recommended retention period for accounts payable invoices is generally seven years. This duration aligns with the typical statute of limitations for tax audits and business recordkeeping practices. Retaining invoices for this period ensures that companies have access to necessary documentation in the event of audits or financial discrepancies. It also provides a buffer for any potential legal claims or inquiries related to transactions.

While shorter retention periods may be considered in specific contexts, they do not allow sufficient time for potential audits, which typically occur within several years after the filing of tax returns. Retaining them permanently might lead to unnecessary storage costs and administrative burdens, and retaining them for only two or five years may not cover the common requirements for tax compliance. Therefore, keeping accounts payable invoices for seven years strikes a balance between legal compliance and practical record management.