Frequently Asked Questions on Receipts

Frequently Asked Questions on Receipts

Receipts can be overlooked and this can be the start of the stress on your end if you are a business owner or self-employed individual. Tax authorities see receipts as one major supporting documents to make your tax claims deem valid. 

Here are some of the frequently asked questions about receipts:

  • What business expenses are deductible when it comes to entertainment and meal?

In general, entertainment expenses are non-deductible but of course, there are always exceptions to the rule. A deduction may depend on your type of business you have. The About Publication 463, Travel, Entertainment, Gift, and Car Expenses explains what expenses are deductible or not, how to report those deductibles on your return, what records or supporting documents you need to prove your expenses, and how to administer any expense reimbursements you may receive to your employees. Keep in mind that the expenses on your records can be considered deductible business expenses, provided they meet IRS conditions.

  • Can I use my business credit card statement of accounts to verify my tax claims?

Business credit card statements are not considered as receipts and they won’t validate your claims during an audit because the information needed is incomplete. It only shows the total amount you purchased at a store and not actually the things you bought. Itemized items with corresponding costs are more detailed and acceptable. That is why receipts really matter. 

  • What if receipts got lost and not readable anymore?

It is important to keep your receipts in a safe place and look pleasant for an easy and less stressful IRS audit. Some traditional paper receipts fade eventually such as thermal receipts and one way to have them useful for long years is scanning them and saving on your computers or accounting software. Using an electronic receipt maker is one best option for easy tracking and you can even make a replacement receipt if you need one. There are so many useful receipts during tax season and you have to be familiar with different kinds of receipts to save your tax audit day.

  • Are electronic receipts accepted by the IRS? 

Many companies use a digital receipt generator to create a receipt as it is handy for both business owners and customers. It is also recognized by the IRS but you have to make sure that the digital accounting software program or digital receipt system you use should meet the basic recordkeeping principles. Some highly recommended electronic receipt makers are: Express Expense, Make Receipt, and Expense Fast. For electronic invoices is Invoice Writer.

  • Traditional receipts storage is secured and accessible so why electronic receipts systems are more advisable? 

Yes, the traditional receipts system is secured and accessible but if you are looking for more and better results electronic receipt management is always recommended. It is accessible 24/7 on your end, anytime, anywhere you are. The privacy of your records is more protected as well, as you have assigned employees that can only access the system. And you can easily track everything and collaborate with your accountant, lawyers, or employees quickly and efficiently.

For more inquiries regarding Make Receipt online receipt maker, you can check the FAQ’s page.