"I have so many receipts for my business. What can I do with them?”
First and foremost, you need to keep all business records for a minimum of 6 years. Longer if the document relates to something you own for a longer period of time; i.e. vehicle, property, investments, etc.
Secondly, if you are like me and prefer a paperless environment, you can scan all receipts and save on your computer or in the cloud. You can use a scanner or even take a picture using your phone but if you are using this method, I would suggest naming the receipts and categorizing them based on your fiscal year-end date.
But even better than that, if you are a QuickBooks Online user, you can email the receipts right to your QBO and match the receipt with the bank and/or credit card transaction.
To set up the receipt forwarding from email:
- From the menu on the left, choose “Banking” followed by the “Receipts” tab
- From the two options, select “Forward from email”
- You will then create a QBO email and follow the prompts
- Select “Forward from email” again to ensure the toggle is on for the approved email to send the receipts from
- You are now ready to email your receipts
To match the receipts, under the same menu to set up receipt forwarding will be the list of receipts emailed and ready to be matched.
I would still recommend keeping all the paper receipts in case of a computer malfunction, you might not have to be as diligent with organizing the receipts although I would still recommend it and by fiscal year. Better to be safe than sorry!
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***This blog is for information only and not to be used as tax advice or planning without first seeking professional advice. Information is subject to change without notice.