Tracking the Money/Expenses

[Travis Buchanan]

Hi all,

I think I got some advice on tracking expenses and such when I started out, such as "never pay in cash, always write a check" etc.  I was hoping to get some better defined guidance from the community.

1) For the most part, I have receipts of supplies/materials I bought at Home Depot.  They have an ability to register there, so I can see all my business receipt history.  I may not have kept the original receipts, but will I be fine just to print out any that I may be missing from the online portal?

2) I have traditionally paid my landscaper by checks, but I have no receipts.  Will I need to create them for him?

3) I used a local contractor for hanging exterior doors.  Similarly, paid in checks, but no receipt.

4) Drywall/paint/trim paid by checks, no receipt

5) Plumbing work (resetting drainage/p-traps/ventilation), paid by checks, no receipt. 

I am assuming that I will need receipts for every transaction that came through my business bank account, or credit card charges.  I am envisioning opening up all my repository of receipts, and ensuring that I have one, or able to print one out, for every transaction.  Is there an easier path to rectify all of this?  Creating receipts for my landscape or plumbing help?

Also, I overheard someone saying that any expenses over a certain amount would require a higher level of scrutiny, or formality, as a business-to-business transaction.  Is this true?

[Daniel Hyman]

@Travis Buchanan

@Aaron H. provided good advice. 

In the event of an audit, you'll want to make it as  easy as possible for the government to get where they need to get to. Having detailed records will aid tremendously. You may want to consult with a CPA who offers a document management consultation, which would include best practices for electronic document retention, IRS compliance, 1099 requirements, etc.