RecordKeeping and your business

The IRS suggests that every business maintains their files for 3 years. Recently when I sat in on a teleconference it was suggested to keep the files for 5 years as a reference in case the business is audited. Keep current files in a filing cabinet in the business office space. "Old" files can be kepted in banker boxes in a safe location on site. A safe location would be a back room, basement, barn, garage.....just try and make sure it is secure from water damage and/or potetial fire.