Finrepo » Creating and Starting Business in Finland » Accounting for Entrepreneurs and Small Business » How Long Accounting Records Should be Retained For?


How long accounting records should be retained for?

Accounting records retention/ archiving / archival storage

Accounting materials and the financial statements must be retained. The materials forming the basis for the accounting entries and financial statements must also be retained, i.e. archived. The company's management is responsible for documents archiving. The data may also be archived using paperless office document archive software (digital archiving) as long as methods complied the regulatory rules. All accounting materials except the balance book can be stored digitally.

The supporting or confirming documents must be retained during 6 years

The documents for the financial year, correspondence regarding everyday business transactions, and other possible confirming accounting documents/materials for transactions must be retained in Finland for at least six (6) years after the end of the year during which the financial year ended. (Accounting Act 1336/1997, Chapter 2, Section 10; (in English) and (in Finnish)). The documentation: confirming documents and other accounting materials must be retained carefully and must be up kept in a systematic manner: by the order of entry or in another way which allows to easily identify the connection between a transaction, document and the accounting entry.

The financial statements, annual management report, ledgers, chart of accounts and the list of ledgers and materials must be retained for at least 10 years.

The financial statements, annual management report, ledgers, chart of accounts and the list of ledgers and materials must be retained for at least 10 years from the end of the financial year. The data must be stored in a systematic manner.

When the financial operations are terminated or accounting obligations come to the end for the other reasons, a reporting entity or the beneficiary shall to notify the registration authority (Trade Register / kaupparekisteri, Association Register / yhdistysrekisteri) about who has been entrusted with the storage of the accounting materials.

Example

If the fiscal year is 1.07. - 30.06., at the beginning of 2021 in the archive may be destroyed:
  • the supporting or confirming documents for period 1.07.2013 –30.06.2014 or older
  • accounting documents (the financial statements, annual management report, ledgers, chart of accounts and the list of ledgers and materials) for period 1.07.2009 – 30.06.2010 or older
  • The given time frame is a minimum time period

It is worth to remember, that very often the limitation period for issues related to the property crime and to accounts receivable frauds has a 10-year basic limitation period. It may occur that after 10 years will be necessary to determine the acquisition cost for real estate, securities, equipment, machineries and devices. The accounting materials concerning the aid provided by EU Fund Programs shall also be retained as laid down in Ministry special regulations. It is also advisable to store the payrolls and the key documents concerning employment relationships for a longer time.

Some useful information in Finnish can be found on Taloushallintoliitto website .

  previous page   next page