10 Minute Tidy Office Tip 61: What To Do With Receipts

by shannon on January 21, 2013

Decide how you want to organize your receipt files. You can make new files each year or keep reusing the same system, transferring last year’s receipts to where you store your current tax year documents. I recommend having new files each year so that there is no overlap or misfiling of receipts.

I discourage my clients from using envelopes for monthly receipts as the primary reason to keep receipts is either so that you can return something or have it for tax purposes. Having your receipts filed by category would help you find the receipt faster for either of the previously mentioned reasons. Consider only keeping receipts if you need it for tax purposes, it may be returned, you will be reimbursed, or if it is a valuable asset such as art, jewelry, etc.

Setting up files that mirror the categories on your tax returns will make tax time a breeze. If you set up 2 sets of identical files – one for odd years and one for even years-you can simply switch back and forth every year and not get your receipts intermingled between years prior to completion of taxes. Once taxes are completed, all receipts can be put together in a tax archive file for that year.

It’s important to keep the original charge card receipt for business expenses over $100 for tax purposes, as the monthly statement does not indicate what was purchased.

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