Welcome to this week's Q&A where I answer the most recent accounting & bookkeeping questions I've been asked!
Here's this week's question:
Q: Can I throw away my receipts after I've recorded them in my accounting software?
A: It's best to keep all your receipts for at least 7 years in case you are ever audited on one of your tax returns but guess what? Digital copies are fine so you don't have to keep everything in a shoebox or take up space in your office with filing cabinets.
Take these couple of easy steps to keep you covered:
1. Write down what your expense was for on your receipt (for example: meal with prospective client)
2. Use a scanning app (I use Genius Scan) or simply take a photo of the receipt
3. Send the digital receipt to Google Drive, Evernote, Dropbox, or any other cloud storage.
4. Rip up, crumble up into a ball and make a 3-pointer into the trashcan, or just leave the receipt in your wallet/purse (like I sometimes do).
Accounting software companies are starting to add this feature to their mobile apps. If you use QuickBooks or Xero, you can use this feature!
Have an awesome day and until next time!
All the best,