The IRS requires “contemporaneous records” to prove deductions and credits. That means you can’t go back later if you forget a receipt. Make sure you get receipts and other records if you’ll use them for a tax break. This is especially true for charitable deductions over $250 in value, but also for business expenses, gambling losses, hobby losses and tip records.
For businesses there are great apps that you can use to take a photo of any receipts and they will upload to your accounting software and keep a digitial record of the receipt attached to the transaction permanently. This is a great way to streamline your accounting process and keep your records stored safely.
We are prepared to help you in the process if you want to transform your accounting process and move forward with technology.
