How to Keep Track of Receipts for Your Business
Written by Darshan Thakor, founder of ScanMyReceipt · Published · Updated
Most receipt problems aren't filing problems. They're capture problems: the receipt never made it anywhere. This guide sets up a simple system that gets every business receipt into one place, keeps it findable, and turns month-end into a 15-minute check instead of a weekend.
Which business receipts to keep
The IRS lets you use any record-keeping system that clearly shows your income and expenses. On its page about what records to keep, it lists supporting documents such as sales slips, paid bills, invoices, receipts, deposit slips and canceled checks, and says documents for expenses should show the payee, the amount paid, proof of payment, the date, and a description that shows the cost was for the business.
| Type of record | Examples | Why keep it |
|---|---|---|
| Everyday expenses | Supplies, software, fuel, parking, postage | Supports the expense totals on your return |
| Purchases for resale or materials | Stock, raw materials, parts for a job | Shows the cost of what you sell or build |
| Travel, meals and gifts | Hotels, flights, client meals, gifts | The IRS asks for extra detail on these; see Publication 463 |
| Business assets | Laptops, tools, vehicles, furniture | Needed for depreciation and when you sell the asset |
| Proof of payment | Card statements, canceled checks, transfer confirmations | Shows the expense was actually paid |
| Payroll | Pay records, employment tax filings | Employment tax records are kept at least 4 years |
A receipt alone doesn't always prove everything. A card statement shows you paid but not what you bought; a receipt shows what you bought but not always who paid. The IRS notes that a combination of documents may be needed, which is why it's worth keeping the receipt and adding a short note about the business reason.
A 4-step system for business receipts
Any system works if it's used every time. These four steps take seconds per receipt and avoid the two classic failures: receipts that never get captured, and receipts that get captured but can't be found.
- Capture on the day. Photograph paper receipts before they fade or get lost. For emailed or online receipts, take a screenshot and add it from your gallery, so paper and digital receipts end up in one place.
- Check the key fields. Make sure the merchant, date and total are right. In ScanMyReceipt these are read from the photo automatically; you just confirm them.
- Label it. One category for the type of expense (Office, Travel, Fuel…), tags for the client, job or location, and a note when the business purpose isn't obvious.
- Export on a schedule. Monthly or quarterly, export the period as a spreadsheet or PDF and file it with your books, or send it to your bookkeeper.
If you want this system without building it yourself, a business receipt tracker app covers all four steps in one place, with the receipt image kept alongside the details.
Paper vs digital receipts
Paper is familiar but fragile. Thermal receipts fade, folders get misplaced, and finding one receipt from March means flipping through everything. Digital copies are searchable and easy to back up, but only if they're clear, complete and stored somewhere you'll find them again.
| Paper only | Photos in a camera roll | Receipt app | |
|---|---|---|---|
| Finding one receipt | Flip through folders | Scroll and squint | Search by merchant, amount, date, tag or item |
| Fading and loss | Thermal paper fades; boxes get lost | Safe if your phone is backed up | Image saved with the details and synced |
| Totals by category | Add up by hand | Not possible | Built into exports |
| Sharing with a bookkeeper | Photocopy or scan | Send dozens of images | One PDF, spreadsheet or ZIP |
The IRS accepts electronic records from systems that meet the standards in Revenue Procedure 97-22, such as reproducing documents legibly and being able to find them again. Our guide on how long to keep business receipts explains retention periods and what a digital copy needs to show.
Who captures receipts, and when
Most lost receipts belong to someone other than the person doing the books. Decide who captures what before it becomes a problem.
- Owner-operators: capture everything yourself at the point of purchase. If you only do one thing, do this.
- Small teams: the person who pays captures the receipt. Each ScanMyReceipt account is individual, so each person scans in their own account and sends an export to whoever keeps the books.
- Subscriptions and online orders: pick one day a month to screenshot the billing pages or emailed receipts for recurring charges.
- Cash purchases: these are where paper receipts matter most. Capture them immediately, because there's no card statement to fall back on.
A 15-minute month-end routine
- Compare your card and bank statements with your receipt library and capture anything missing.
- Scan through last month's receipts and fix any wrong dates, totals or categories.
- Add tags for clients or jobs, and notes for meals, travel or anything unusual.
- Export last month as Excel or PDF and save it with your business records, or send it to your bookkeeper.
Exports can be filtered by date range, category or tags. See what each format contains on the receipt export page.
Sources
ScanMyReceipt helps you organize and manage receipt records. It does not determine whether an expense is deductible and does not provide tax, accounting, or legal advice. Consult a qualified professional for advice about your specific situation.