What general rule applies to retaining correspondence?

The general rule for retaining correspondence is often aligned with the statute of limitations for various financial documents. Many organizations adopt a policy of retaining correspondence for a minimum of two years. This timeframe allows for sufficient time to address any disputes or audits that may arise, as it is often understood that significant issues related to accounts payable can be resolved within this period. Retaining correspondence longer than this can be beneficial, especially for specific legal or regulatory requirements, but as a standard practice, two years is commonly accepted for general correspondence.

While some documents, such as tax-related records, may be retained for longer periods (such as five or seven years), and certain materials may need to be kept permanently for historical or compliance reasons, two years is a practical and widely adopted minimum for correspondence to ensure that the necessary documentation is available without overwhelming storage with records that are not typically needed after this time.