How long do I need to keep my receipts?

In general, you should keep business receipts for three years. In some special circumstances, the IRS might even require you to keep your receipts for up to six years. For example, you’d need records on hand for up to six years if you underpaid your taxes by more than 25 percent.

In some cases, you can mine for documentation from previous years through online bank records or merchant websites. But it’s not guaranteed that older documents will be stored on these sites, and you won’t have access to records on accounts you’ve closed or stores that have closed or changed their websites.

The best practice for storing receipts is to download digital PDFs (if available) and save them in a folder for each month and year. Paper receipts can be scanned using a digital receipt app. Remember that the folder should be backed up or saved, preferably somewhere easily accessible, so it can be accessed for years to come.

Categorizing your receipts can be a pain, but when you work with us, we manage that for you. You can use us alongside your preferred receipt storage app, and we’ll take care of your business bookkeeping by importing, reviewing, and categorizing all of your expenses every month. Schedule a call and we will help you with the next steps immediately!