As a business owner, you should know what are the useful receipts or invoices to keep as it is your legal obligation as a taxpayer to save records and present all the necessary documents during tax season. Being organized and clearly shows your income and expenses is a big plus to make the auditor work run smoothly and to avoid stress on your end.
Here are the receipts or supporting documents that you must have on your records:
Keep in mind that for purchases, sales, payroll, and any other transactions you have in your business must have supporting documents to show.
For Gross receipts
- Cash register tapes
- Deposit information (cash and credit sales)
- Receipt books
- Invoices
- Form 1099-MISC
For business purchases
- Canceled checks or other records reflecting proof of payment/electronic funds transferred
- Cash register tape receipts
- Credit card receipts and statements
- Invoices
For business expenses
- Canceled checks or other documents reflecting proof of payment/electronic funds transferred
- Cash register tape receipts
- Account statements
- Credit card receipts and statements
- Petty cash slips
- Invoice
For Travel, Transportation, Entertainment, and Gift Expenses
For additional information, refer to Publication 463, Travel, Entertainment, Gift, and Car Expenses.
For Assets
- When and how you acquired the assets
- Purchase price
- Cost of any improvements
- Section 179 deduction taken
- Deductions taken for depreciation
- Deductions taken for casualty losses, such as losses resulting from fires or storms
- How you used the asset
- When and how you disposed of the asset
- Selling price
- Expenses of sale
The following documents must display the following information:
- Purchase and sales invoices
- Real estate closing statements
- Canceled checks or other documents that identify payee, amount, and proof of payment/electronic funds transferred
Employment taxes
Keep all the records of employment for at least four years. For additional information, refer to Recordkeeping for Employers and Publication 15, Circular E Employer’s Tax Guide.
You can always check the IRS (Internal Revenue Service) for more guidance and information. But also be aware of IRS Scams.
The best way to keep receipts is to be organized. You just need to spend a little time each day and file everything according to its month and year. And to avoid too many papers or filing cabinets around the office you can use MakeReceipt to make your work quicker and better. It is a receipt maker that can make your filing taxes less challenging. You can also assess your annual spending more accurately. Read the Interesting Facts About Receipts, How Useful Is a Receipt, and Online Receipt Generator on Apps and Websites to know more about how amazing this tool is.
Additionally, if you have a lost receipt and need replacement, or want to remove specific items because it is not considered as a business purchase, you can create a receipt in a wide variety of formats. Receipt template such as Restaurant Receipt, Retail Store Receipt. Gas/Fuel Receipt and many more!
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