Let’s be real, nobody likes keeping track of their receipts. And if you do… well, you’re definitely in the minority. But whether we like it or not, receipts matter more than most business owners realize.
There are many reasons to track your receipts, but here are the top 3.
- IRS Audit Protection
- If you get audited and don’t have receipts, the IRS can wipe out your deductions.
- No receipt = no proof.
- No proof = disallowed deductions.
- Disallowed deduction = higher taxes, penalties and interest.
- It really is that simple.
- Accurate Bookkeeping & Clean Tax Returns
- Bookkeeping is only as accurate as your documentation.
- A bank statement only shows the amount – not what you bought or why.
- Receipts keep your books clean, your categories correct, and your tax return accurate.
- Guesswork leads to mistakes, and mistakes cost money.
- Support for Specific IRS-Limited Deductions
- These categories have strict substantiation rules. If you don’t have detailed receipts, the IRS automatically disallows these deductions – no estimates allowed.
- Meals- must show who you met and the business purpose.
- Travel – dates, locations, and receipts.
- Vehicle – mileage logs or actual expense receipts
These deductions add up to thousands each year, and they’re the first one’s auditors look at.
Keeping your receipts may feel like a hassle, but the protection and savings are worth it. A few seconds of record-keeping now can save you hours of stress – and potentially thousands of dollars – later.
If you’d like help reviewing any of these items, now is the perfect time to reach out.
Click here to schedule your free consultation.
https://engage.townsquareinteractive.com/site/TIPRECIS263/online-scheduling or reach out anytime for support.
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info@bookswithprecision.com
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