The IRS requires you to maintain “adequate evidence” for business expenses that you claim on your tax return. In this electronic age, though, what’s the best way to collect and store your receipts?
The truth is that the best way will depend greatly on you and how you like to work.
- Some people still store paper receipts, and nothing is wrong with that.
- Others like to scan everything and store it electronically. If you are storing electronically, ensure you have a “backup” for those documents.
- Another option is to use an expensive program like Expensify or Tally to track and store your receipts.
- You can also take photos of your receipts and either store them in QuickBooks Online (see our Cool Tools on the topic) or store them electronically.
The truth is there are tons of great ways to store your receipts, and the most important thing is to decide on something that will work well for you and then FOLLOW IT regularly. Consistency is the most important thing!
While the IRS makes you maintain receipts, a good receipt organization also makes bookkeeping easier. In addition, we can make sure things are coded appropriately when we see the receipt. So figure out the best method for you, and then make sure you organize your receipts and stay consistent doing it!
If you need help figuring out what might work best for you, give ZümiFi a call, and we can walk you through the options and get you set!