Fix Your Receipt System Before It Costs You: A Must-Do for Small Business Owners
If you're a small business owner, you probably already know that keeping track of receipts isn't just good practice—it’s crucial for tax time, audits, and staying profitable. But despite the importance, it's one of the most neglected tasks in small business bookkeeping.
Receipts are proof. They back up your deductions, clarify spending, and keep your books clean. Yet too often, they’re crumpled in glove boxes, lost in inboxes, or forgotten completely.
Here’s the reality:
The IRS may not chase you down for a $30 lunch—but they will question a $3,000 equipment write-off if you can’t prove it. And missing receipts could mean lost deductions or added penalties.
That’s why it’s time to fix your receipt system.
Step 1: Choose One Method
Pick one system to track your receipts—paper, digital, or both. You don’t need to overthink it, but you do need to be consistent.
Some of the best options:
Google Drive or Dropbox folders (snap and upload)
QuickBooks Online receipt capture
Apps like Dext, Expensify, or Shoeboxed
Envelope method for paper receipts
Step 2: Make It a Habit
Set a weekly reminder to snap or upload receipts from the past 7 days. Ten minutes is all it takes to avoid a huge mess down the road.
PRO TIP:
If you’re serious about scaling, start using a system more advanced than what you need right now. Your business will grow into it—and your future self will thank you for not needing a total system overhaul.
FAQs
Do I need to keep physical copies of receipts?
No, digital versions are acceptable. Just make sure they’re legible and properly stored.
How long should I keep my receipts?
The IRS recommends keeping receipts for at least three years, but some professionals recommend seven years for added safety.
What if I lost a receipt?
Try to get a copy from your vendor or bank. In some cases, notes and documentation may help, but it’s not guaranteed to hold up in an audit.
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