I find dealing with receipts to be one of the biggest challenges my clients face. While everyone has different needs these two basic rules can apply to all.
- At the end of each day make sure all your receipts end up in the same spot. It can be a box, basket or folder.
- At least once a week “process” those receipts. Check them against your
accounts (bank or credit cards) and if applicable enter them into your
accounting system. Then you can toss or file depending on your needs for tax, insurance and possible return purposes.
I file receipts that I don’t need for taxes but need to save for insurance or possible returns in an accordion file by categories such as Electronics, Appliances and Clothes. I go through this about every 3 months or so to make sure I still own the items. I also toss any clothes receipts that are beyond the return deadline.
Since I don’t have many business expenses those tax receipts go into a hanging folder. All personal receipts needed for taxes go into my two pocket tax folder that is stored in a hanging folder in my filing cabinet. When the beginning of the year comes around the folder is kept out on my desk to make it easier to gather the W2s and other forms that come in.