Businesses need to keep important receipts to protect themselves during an audit, according to blogshoeboxed.com.
The following receipts are especially important to keep.
1. Meal and entertainment receipts.
Meals and drinks are often used to help win clients. However, the line between between meeting friends and business associates is often blurred, making these expenses a common target for auditors. The receipt should contain a note of who attended and the purpose of the meeting.
2. Travel expenses.
Travel is another area where the line between business and pleasure is often blurred. Receipts for accommodation, taxis, meals and tickets should distinguish between personal and business matters.
3. Vehicle related receipts.
Assets such as cars, which are used for both business and personal reasons need to have the business portion accounted for separately. This percentage can be applied against vehicle costs in any claim.
4. Gift receipts.
Items such as tickets could be treated as gifts or entertainment depending on whether the giver attends the event with the client. It’s important to document this so the accountant can categorize the receipt correctly.