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Do you save every receipt?

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  • Do you save every receipt?

    Last year was my first year in business and I mainly only saved the big receipts (ie. truck, trailer, equip etc.) Things like gas receipts, envelopes, business cards I just had my accountant refer to my bank statements.

    Do you literally need to save every receipt or are bank statements enough to show your expenses in case of an audit?

  • #2
    Better save than sorry. Get a box and throw them in.

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    • #3
      I'll go through stages... I'll be hardcore and save every receipt.. then I get sick of it and start throwing them out.

      I suppose anything over $20 is worth saving, it adds up. The smaller crap is just clutter to me.

      However, all gas receipts (even $1) are saved. It's good to keep just in case you want to go over how much you spent on a certain thing later on.

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      • #4
        I have so many receipts that I probably have yours.

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        • #5
          The smaller crap is just clutter to me.
          Cheese you need a box
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          • #6
            I have so many receipts that I probably have yours.
            lol Me too! I get audited by my wife frequently. It better add up! lol
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            • #7
              In the words of my accountant "save every receipt". Why? because if you get audited and they want to make it hurt, not having a receipt means they may have the option to not "count" that as a legitimate business transaction and you lose it, and lose money. That's my dumbed down scary version because I'm obviously not an accountant

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              • #8
                It might be a hassle to save every single receipt at first, but it will become a habit after not long at all. Besides, saving all your receipts will improve your organizational skills overall. Not to mention your awareness of spending

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                • #9
                  If you're a sole-proprietorship or paying with a personal source of income ~~ it shouldn't be an issue in those 2 cases, just don't spend collected tax money.

                  I file all my receipts in an envelope, and they are placed in a folder for each month. bla bla bla. Over the winter I do get lazy and end up with 10 inches of receipts in my wallet I have to file, it can be a nightmare, kind of exhausting to go through.

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                  • #10
                    I get a box every year you know the ones that paper comes in. I put every receipt for everything including personal expenses in there. I keep tracl of every penny with quickbooks, I feel that if I get and IRS audit, they can have fun going through tha box. It is completely filled by the end of the year.
                    Besides wich there are legit business expenses outthere that you can accidentally get if you get audited, all you have to have is the receipt. That happened to my neighbor two years ago, got an extra 1K back

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                    • #11
                      My wife is thinking about getting the neat desk system, but they don't have an option to import into quick books yet.

                      For now I use a credit card (15k limit) for every single business related purchase, we build travel miles too with it. Then down load trans actions to quick books and match them up once a week, I usually spend 90mins on it Sunday nights.. I file the receipts the for week in an envelope so if I need to find something down the line I only have to sift through a weeks worth of receipts to find it.

                      Works out pretty nice especially for material or parts returns.

                      I have separate folders for monthly statements, insurance, 1099's, registrations, vehicle repairs, licenses, investments etc...

                      Haven't been audited yet but my wife is an accountant so she keeps it all neat and ready to go. She audits our books every quarter so we don't get behind and have the massive nightmare we had my first year in business when she had to take a week of from work to figure it all out...

                      Its been five years and she still give me crap about it...
                      Last edited by warbuff; 03-22-2013, 08:09 AM.

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                      • #12

                        For now I use a credit card (15k limit) for every single business related purchase, we build travel miles too with it.
                        i've been doing the same thing actually.

                        i guess ill just start saving everything i get. my accountant did my taxes this year and was able to go through my bank statements. anything that said it was purchased at staples, office max, cvs etc. we put into a separate category, same for repairs and equip maintenance and so on. wasn't sure if that was good enough for the IRS or not.

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                        • #13
                          i've been doing the same thing actually.

                          i guess ill just start saving everything i get. my accountant did my taxes this year and was able to go through my bank statements. anything that said it was purchased at staples, office max, cvs etc. we put into a separate category, same for repairs and equip maintenance and so on. wasn't sure if that was good enough for the IRS or not.

                          We still save our receipts but having a credit card that is business only is another tool that helps you separate out what you need quickly...

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                          • #14
                            I owned a small advertising company a few years ago, you should save every single receipt no matter what. Let me give you a little story as to why:

                            3 years ago a friend of mine owned a business, some receipts he saved and some he didn't. Will when it came time for his taxes some of his figures didn't add up and he fudged on his taxes because he couldn't figure out what the amounts were from receipts thrown out previously that year. Long story short, he got audited by the IRS, and since he couldn't provide a receipt for alot of transactions he ended up paying some hefty fines and the fines caused him to have to use a loan to pay which caused him to have to close his business.

                            Was the stupidest thing I ever heard, mainly because I told him save all of your receipts, and he'd be like it will be okay....yeah it was okay he got caught and lost his business from it. Never take any chances when you are dealing with business expenses and the IRS, because Uncle Sam will get you eventually.

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                            • #15
                              WOW How big of fines are we talking here?

                              Do you feel your friend wanted out of the business anyway and this just made it easier for him to decide or was this just one big knock out?
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