Dubois, IN · Member since 2016 · 120 posts · 16 votes
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!
Accountant · Charlotte, NC · Member since 2018 · 29 posts · 21 votes
7y
This is a great question and it is very important to keep record of the invoices. Usually we recommend invoices should be kept for at least 5 years, and legal documents should be kept permanently. It will come in helpful if you use a software to help you, but there are so many to choose and it can overwhelming to try out one by one. Here are a few options I think works very well depends on what type of investor you are:
Stessa - If you are a buy and hold investor, you don't have an LLC and you have a property manager takes care of the rents collection for you. You can use Stessa. It is free to use.
Cozy - If you are a buy and hold investor, but you manage the property by yourself.
Quickbook - If you are an active investor (Flipping house, Airbnb, construction, etc.), or you have an LLC. I recommend quickbook.
Accountant · Charlotte, NC · Member since 2018 · 29 posts · 21 votes
7y
This is a great question and it is very important to keep record of the invoices. Usually we recommend invoices should be kept for at least 5 years, and legal documents should be kept permanently. It will come in helpful if you use a software to help you, but there are so many to choose and it can overwhelming to try out one by one. Here are a few options I think works very well depends on what type of investor you are:
Stessa - If you are a buy and hold investor, you don't have an LLC and you have a property manager takes care of the rents collection for you. You can use Stessa. It is free to use.
Cozy - If you are a buy and hold investor, but you manage the property by yourself.
Quickbook - If you are an active investor (Flipping house, Airbnb, construction, etc.), or you have an LLC. I recommend quickbook.
I use Microsoft OneDrive. Its “free” I think. I do pay for the Microsoft Office suite annually so Im not entirely sure if OneDrive would be free without that subscription. The app gives you the ability to scan receipts as a PDF file. I save them in folders by year. I name each receipt/pdf file with the date the transaction posted on my account followed by the Merchant Name. These two data points alone help me search and find the receipts very quickly. Hope this helps!
CPA | Accepting new clients | 50 States · Member since 2022 · 1k+ posts · 871 votes
3y
You aren't required to keep receipts for purchases from your business credit card or bank account. The IRS says to keep records for your business tax deductions indicating:
What you bought
When you bought it
How much you spent
It doesn't mention requiring paper receipts at all. There is an exception. A receipt is required if you make an out-of-pocket cash purchase for > $75.