Keeping track of receipts?

29 Replies

I was wondering if there's a better way to keep your receipts together? Is better to keep them together by month, by vendor, or something else? I want to work smarter, not harder!

Hi @Carrie A. , this is a good pro-active question.  I use Expensify to keep track of all my investment receipts and it works awesomely.  Keep in mind that the deepest purpose of these records is a trail of evidence for you to use in the event of an audit.  When that happens we will all be thankful we kept our records with more specifics than less.

Best of luck out there!

I use Neat with a Fujitsu ScanSnap S15000 scanner.  All text & amounts are searchable through a search box.  It auto enters most information such as the vendor name, date, amount, etc and you can enter other info such as project, client, class etc.  You can filter on all that information to see only receipts/documents matching the filters.  You can even email receipts directly to Neat.  I have my employees email their receipts to it, and they sit in an inbox until I review and file them.

There is software that will let you track where the receipt is from, how it was paid, what it was for, a tax category, and the date. Then you can find receipts and look up totals from a variety of different perspectives, e.g. how much did you pay vendor X in 2018, or per month, or by unit, etc.

Originally posted by @Carrie A. :

I was wondering if there's a better way to keep your receipts together? Is better to keep them together by month, by vendor, or something else? I want to work smarter, not harder!

I don't keep ANY. The charge goes into my property management software as an expense. And is reconciled against a real life bank account. So no need to keep the piece of paper 

 

Originally posted by @Carrie A. :

@Cody L. What do you do if you get audited and they want copies of receipts for proof??

 Exactly. I was audited back in 2010 & 2011 & all they wanted was receipts & to which property they were applied & for what & had to show a copy of said receipt. CC statements were not accepted so thankfully I had Neat at the time & the reports with the scanned receipts were my savior. Now I scan in every receipt (HD emails them as do Lowes) & file it under a property folder with expense details. 

Here's a Sobering thought... IF you combine the words THE IRS it spells THEIRS !!!

I'm old school.  I sort the receipts by property and keep them in a folder with a binder clip for each tax year.  There aren't too many of them, aside from when I do renos.  I also write on the receipt what it was for if it isn't obvious.

I keep a folder for each house ,when I spend money on it goes into the folder for that house .Come tax time I simply hand over the folders .The trick is not wait to put the receipts in the folder,I file it  that day or next .

I use Cozy to upload and sort all my receipts.  I attach the scanned copy to Cozy as well as keep a copy in a folder on my computer so I have a backup.  Cozy has a download that auto sorts everything for end of the year that matches up to your tax documents.

@Carrie A. I use LandlordStudio. It’s cheap and it makes it easy to keep track of all your expenses including mileage. Plus you can take pictures of your receipts and they store them on the cloud.

Also when you get a new property, it’s easy to add it.

@Carrie A. Definitely keep them sorted by property. I use Dropbox for electronic storage which comes with a scanner in the phone app, so I can scan immediately on the go and then ditch the paper. I then track those expenses in QuickBooks.

Alternatively there is a bookkeeping service called Waveapps.com that does a good job and also has an app that will read the receipts you take a picture of and id the vendor, amount, date and then suggest an expense category. It’s free too.

I’m old school. I jam them in the folder for whatever property and write on a paper the date and expense. Takes two seconds. I only have 7 properties so it’s super easy and fast to do it this way.

Originally posted by @Carrie A. :

@Cody L. What do you do if you get audited and they want copies of receipts for proof??

I've been audited.  And passed.

Why would I need a home depot receipt when I have a copy of the charge in my bank, and it's accurate recorded in my system and assigned to my property.  Ditto all my utility bills, mortgages, and payroll / contractor payments.  I guess the only "cheat" I could do is buy something at Home Depot for my house, and charge it to my property.  But even if I kept the receipt, and it was for "ceiling fan" no way they'd be able to tell if it was for a property or my house.  But hell, even if I did want to try to buy stuff for my house from depot and charge to properties, how much could I possibly buy like that anyway?