Don't throw out those receipts!

If you are like many busy business owners you don't have time for massive bookkeeping and paperwork. As someone who likes to streamline their time and paperwork you may be tempted to toss out the receipts for office supplies, meals out, and fuel because you know the debits or charges will be listed on your statement from the financial institution. This is typical behavior for business owners on the go. However, you need to know this...

The IRS rarely deems those financial statements as proof of eligibility of the deduction because they do not have enough detail about the expense. Furthermore, failure to keep adequate records has been deemed as negligence by the IRS.

Not only should you keep the receipts it is advisable to makes notes on the receipt (and in your QuickBooks memo field) of any pertinent information.

To learn more about  proper record keeping visit http://www.irs.gov/publications/p583/ar02.html.