The Real Bottom Line

No filter- Real facts

Steph

1 min read

Keeping receipts is old school, and you don’t need the headache.

These days, you really don’t need to keep every single receipt. Most purchases can be verified through your bank or credit card statements, which are perfectly acceptable for documentation in most cases.

The exception? Cash receipts over $500, those I would definitely keep.

If you’re dealing with cash, toss those receipts in an envelope, write the year on the front, and either track the expenses yourself or hand them to your bookkeeper. Simple.

Cash Ain’t Invisible, and Neither Is the IRS.

Paying contractors under the table? That might not be the best move for your business.

If you’re running a legit business and claiming expenses, then paying your contractors properly is a smart idea, not just for your records, but for your protection. Yeah, they’ll tell you you’re saving money.

But when it’s time to file your taxes and claim those expenses, the IRS might come looking for proof. If you're paying in cash, get a receipt with their name on it. Better yet, issue a 1099-NEC if you pay them over $600 in the year, whether it’s by check or cash. I'm not talking about apps. That's a 1099-K issue.