If you were able to read the Interesting Facts About Receipts and you get inspired on how it is valuable to any business and customers, the following frequently asked questions will give you more insight about receipts.
- Are digital receipts valid? Aren’t paper receipts tested and secured?
The Internal Revenue Service or IRS started accepting digital receipts four years ago and as long as it meets the basic recordkeeping principle, using an electronic system is allowed. You can read Use of Electronic Accounting Software Records; Frequently Asked Questions and Answers and 2017 Digital Services Report for more information. There are still some businesses using the traditional paper receipts and it is okay but keep in mind that innovation always matters.
- Cabinet file storage for paper receipts are more secured and reliable?
It is less secure now when it comes to records privacy and less reliable as paper receipts get faded in due time and can be easily lost. And if you need them after 3-4 years, the information is not readable anymore as the thermal paper is sensitive.
- Occasionally buying materials for your business is not entitled to tax claims?
It can be a small amount like $5, $10, or $15 but when you add up everything you will realize how much money you are spending that is why keeping receipts is a must.
- You do not need to keep your receipts because the bookkeeper and accountant will do the receipt management?
Your bookkeeper and accountant can help you with recording expenses, preparing your accounting needs, and analyzing your business financial performance but then, the IRS needs supporting documents such as invoice or receipts for verification to make your tax claims valid. Make it a habit to organize your receipts every day or after recording expenses in your journal. You will notice how much money you can save on your accounting fees.
- Is it impossible to get audited since I am running a small business?
Small businesses are most likely to get audited by the IRS especially if you are claiming hundreds of thousands of money. Maybe for the past few years, you don’t get audited but don’t be too confident because you might be on the list and you’re next.
Receipt keeping can last from 6-7 years and if you use paper receipts the words and numbers printed might not be visible anymore. Electronic receipt management is the best way to keep your receipts intact as thermal paper cannot be useful after a few months. Using a receipt maker like ExpressExpense can help you save up office space and money and you do not need to buy more filing cabinets, paper, ink, folders for filing and minimize printer maintenance. Keeping records is just handy and less stressful, not just for you but also for your employees.
Receipts’ significance to business accounting is also useful for tax deductions and starting your digital receipt journey is a wise decision to do since everything around change and technology is updating for a better future for all business owners.
