you’ve been putting it off, now is the time to send your business
receipt shoebox out to pasture. Electronic storage of tax receipts makes
it much simpler to organize and keep track of your business expenses
come tax time. All you need is a computer, scanner, and a local and
online file backup method and you’re ready to start keeping your tax
receipts electronically. A recent article on Time’s website detailed what it takes to stay compliant with IRS guidelines for electronic tax receipts.
IRS has a few guidelines you must follow in order for your electronic
tax receipts to be considered valid. First, each receipt must include
the vendor’s name and address, the date of purchase, and how much you
paid. Jot down what you bought and how that item or service is used for
your business. If an audit comes, you’ll be able to easily state why you
claimed that expense. The IRS requires your electronic receipts be
backed up regularly. An external, secure hard drive and an online file
backup service working together give you two safe places to store files
off your main computer. Regular file backups protect you if a fire,
virus, or computer malfunction damages the original files.
There are some good online tools designed to help with organizing and backing up your tax receipts. Try Lemon and OneReceipt for help with organizing files. Shoeboxed, Expensify, and Planet Receipt are online file backup programs designed to help make sure your receipts are safely stored.