Originally Posted by Kelly's Landscaping
Damn talk about taking this too casually. Were about to sort and enter our receipts for 2012. We will have the usual 400 or so gas receipts 250 receipts too our mulch soil and dump site. There's well over 1000 and we track it to the penny which may sound anal or dull but we also enjoy our off road gas usage credit each year which is about $500 when we most need it spring start up.
We use our amx business platinum card for any and everything we can and its nice since even when were missing gas receipts you still have a record of the purchase. Iv never had an audit but I do feel confident if I ever did I would win and thats because we keep all records and they are all organized.
EVERYTHING I purchase for my business is paid for by a business credit card. so there is a trail of what was purchased. there are one or 2 things I do use business checks for but it's not like I don't have records of business purchases.
Originally Posted by Tunica
word to the wise and those wiser. When the IRS does audit, you will be surprised what they will say you cant claim without a reciept or should I say you will be surprised at what you thought you could claim. If they see only big ticket items and if this audit person is loving his work the questions start. Before long you'll feel like the first time you went to the principals office "backside burn". I got lucky he explained things to Me. Now as I breath air when working I ask the wind for a receipt.
as for writing stuff off I don't believe I do any of that.
I give my accountant 3 numbers each year to do my taxes. my total income, my total expenses and any equipment and there dollar amounts. oh and I give him how many work miles I put on my truck.
that's it. he never sees a list of my actual expenses. the only reason I categorize expenses is for my personal knowledge of how much I'm spending on say fuel or supplies.
I don't think not having every single receipt is going to hurt me in an audit.