As a business owner, you probably never say “no” when asked if you would like a receipt. It’s almost an instinct to accept a receipt for even the smallest purchases. This usually leads to an ever-growing pile of paper receipts that, at the end of the year, can seem impossible to organize. And while it’s not impossible, it definitely is time-consuming if you neglect simple tasks throughout the year.
This gathering of receipts isn’t usually a side effect of a business owner’s desire to spend hours and hours organizing them. It’s more of an automatic response that will hopefully help you to get more out of your tax return while also preventing that dreaded audit.
Even if you have immaculate books and records that detail exactly what your expenses were for the year, without receipts and documentation to prove these expenses, you can be at risk of an audit.