Best storage methods for receipts and write-offs
If you have a business, one of the perks is the ability to write off certain expenditures that have to do with your business operations. This could be anything from meals to cell phone use to airplane tickets. In the end, faithfully reporting your expenses can end up saving you a lot of money when tax time comes.
However, in order to be able to do so, you must keep good records of your receipts and write-offs. This means storing everything in an organized fashion so you or your accountant can access them during tax time.
The following are some of the best storage and organization methods for receipts and write-offs.
Set aside a place in your wallet or purse for receipts.
Set aside time once a week to separate and organize receipts.
Find a storage method for your receipts and write-offs.
Whatever filing system you choose, it is a good idea to organize your receipts by month. Folders are a great way to do this. You can also use large envelopes to store them, and then keep them in a safe place, such as a drawer, filing cabinet, or other place you can keep them all in one spot. You can do this by having a manila folder for each month, where you can then store receipts for each month, making them easier to organize when it is time to do your taxes.
You may also want to consider keeping track of your expenses and write-offs online or on a computer program as well. You can make a simple Excel spreadsheet of your expenses and write offs, which will also make it easier for tax season when it is time to record your information.
It is also not a bad idea to store your irreplaceable or especially important receipts (such as big-ticket items) in a fireproof box. You may also consider putting your receipts into plastic covers, which will help protect them.
Keeping your receipts and write-offs organized and stored is important for record-keeping and taxes. The above are some of the best ways.