Wondering what to do with all those receipts you’re collecting? And if you really need to keep them? 🤔
This article dives into everything you need to know for organizing and storing receipts for all your business expenses.
Why do I need to keep my receipts? … there’s so many 😫
Receipts provide the tangible proof, required by the CRA, to back-up any business expenses that you claim when filing your taxes.
While bank account and credit card transaction records confirm money was spent at a store on a certain date, receipts provide the detailed breakdown of items purchased and fees charged.
In the case that you charge sales tax (GST/HST), it’s extra important to keep the itemized receipt because it shows how much tax you paid. A debit or credit transaction slip simply shows the total amount charged to your card. That won’t cut it, if the CRA has questions.
As a business owner, you are responsible for ensuring that you have the corresponding receipt for all business expenses claimed on your taxes.
🌟 PRO TIP: always, always err on the side of just keeping everything! When in doubt, KEEP THE RECEIPT.
How should I store all these receipts? 🧾
We’ve got 3 proposals for ya. Most importantly, just make sure you find – or create! – a system that you can stick to and that keeps everything in one place, ideally with receipts as easy to find as possible.
Remember: if the CRA has questions, the last thing you need is the stress of trying to remember where to find the receipts they’re wondering about! Be kind to future you!
1️⃣ Email Folder
- Create a folder in your email account to store ALL your receipts for the calendar year
- i.e. 2023 Receipts
- Every time you get a digital receipt, add it to the folder! Sent to a different address? Forward it and file accordingly.
- Every time you have a paper receipt, snap a pic on your phone, email it to yourself, file it away.
- Bonus! Use the subject line: DATE VENDOR ITEM (07/30/2023 Value Village Costumes)
2️⃣ Digital Folder
- Create a folder on your computer or Google Drive to store ALL your receipts for the calendar year
- i.e. 2023 Receipts
- Set a recurring date in your calendar to review all your receipts and update your folder
- Ideally weekly or monthly to avoid a pile-up! From personal experience, it can start to feel overwhelming quickly.
- For all your digital receipts, simple download and add to your folder
- For all paper receipts, take a pic and upload to your folder
- Bonus! Label all your receipts the same way. This is a game changer because it means you can find anything with a quick and easy search.
- DATE_VENDOR_ITEM is our go-to!
- Grab an empty shoebox or large envelope
- Throw all your receipts in!
- Disclaimer: this is not our fave solution. It gets real messy, real fast. Ink on your receipts can fade and then, poof 💨 There goes your proof of purchase! If you’re gonna use this method, we suggest using a ballpoint pen to write the date and purpose of the purchase on each receipt.
How long do I have to keep them for?
6 years from the end of the tax year they are for! So if you have a collection of receipts from the 2023 calendar year, you will need to keep them until January 2030.
Learn more on the CRA website here.
We hope this helps develop a system that works for you 💜
We’re working hard to add a receipt storage feature to our platform and thank you for your support as we continue to do so!
Questions? We’re always here for you. Drop us a line at firstname.lastname@example.org and we’ll be happy to chat 😊