Receipt Management

I just wrapped up a cleanup project for a client.

Got the accounts reconciled and the reports accurate. But then we got to the receipts.

They weren’t missing because the expenses weren’t real. They were missing because they were scattered - buried in email threads. glove compartments, and the mental “I’ll get to that later” pile.

Here’s what most business owners don’t realize until audit season:

Your bank statement shows where the money went. The IRS wants to know why it went there.

Without proper documentation:

• Legitimate deductions can be disallowed

• Profit can appear higher than it actually is

• “Clean books” can still carry hidden exposure

What the IRS expects:

• Most receipts kept for at least 3 years

• Asset records kept for the life of the asset + 3 years

• Loss-related records kept for up to 7 years

Digital records are perfectly acceptable - as long as you can actually find them when you need them.

So here is a simple system for 2026 that you can set this up this week:

1. Create one folder: “2026 Business Receipts”

2. Add 12 subfolders (Jan–Dec)

3. Commit to a weekly save routine, not “eventually”

4. Add a short note for anything that won’t be obvious six months from now

No expensive software required. Just a system you’ll actually use.

What’s your current approach to receipt management? I’d love to hear what’s working or what still feels painful for other business owners.