Posted by panotary1 on 8/23/12 1:23pm
Msg #431689

Receipts

I'm swimming in receipts, I just cant seem to put together a good way to organize them. I've got a hot mess in a shoe box, and need a good idea on how to keep them neater. Anybody have an easy organization method out there?

Reply by JPH13/MO on 8/23/12 1:31pm
Msg #431691

I keep track of them based on what they are for, such as "Supplies" or "Advertising" in an Excel document with a separate sheet for each item that can be written off. I mark the first one of the year, for example, for supplies, as "S #1" and then throw it in with all my other receipts. I don't need to keep them in any particular order since my records are in order.

I learned this from my Dad, who had tons of investment properties. The IRS does not require that you keep your receipts all neat and in order, just that you have them. My Dad got audited quite often and would hand the auditor his records along with the corresponding boxes of receipts, all thrown together. His reasoning was that it wasn't up to him to make it easy for them to find any particular receipt, and it was more fun, and easier, to do this way. LOL. He also always passed each audit without any penalties, because he did keep each receipt and kept great records.

Reply by panotary1 on 8/23/12 1:33pm
Msg #431692

AWESOME idea! Thanks!

Reply by anotaryinva on 8/23/12 1:36pm
Msg #431693

I'm like your Dad, JPH, I have a file they are all just thrown in there. My husband is a CPA, he's told me horror stories about how some of his clients receipts are turned into him in order for completion of their tax returns. Fine with him, they pay his hourly rate to sort. I am trying to use my Amex business charge for everything related to my notary work so I get an end of the year summary.

Reply by Jessica Ward on 8/23/12 1:56pm
Msg #431695

I keep a manilla envelope on my desk labeled for the current month. All reciepts, check copies, and deposit slips go in there.

At the end of the month, I enter it all into Quickbooks and reconcile it with my statement. I put my monthly reconciliations and P&L plus my account statement in the envelope, seal it, and stick it with "tax stuff" for that year.

This organization system has saved me a great deal of hassle over the past several years.

Reply by HisHughness on 8/23/12 3:28pm
Msg #431705

Be aware that Jessica also collects ...

... all her fingernail and toenail clippings and files them away by date, in case they are ever needed by any of her medical practitioners to track her calcium levels over time. She also keeps a manilla envelope of hairs, with follicles attached, in the event a DNA comparison is needed after a plane crash or similar disaster. These items, along with her will, living will, bank account passwords, and the picture of her being given a bath at the age of 10 months are kept in a water-proof, bomb-proof, child-proof cabinet of hardened polished steel that she welded herself and bolted to the concrete foundation of her home when she was pouring the foundation.

When Jessica organizes something, she starts from the ground up.

Reply by John Tennant on 8/23/12 1:58pm
Msg #431696

I use Quickbooks for all of my records. I also have file box for income, by type of business, and a file box for expenses. Since Quickbooks is itemized by type of transaction I only have to print out a year end financial statement to do my taxes. I also am am IRS Enrolled Agent and recommend this method to all of my clients. Saves them tons of "sorting" dollars at years end. Jillian's method really works.

Reply by sueharke on 8/23/12 3:34pm
Msg #431707

email me privately at "[e-mail address]". I am also a CPA.

Reply by MW/VA on 8/23/12 7:29pm
Msg #431730

Marian in CA swears by the device that's called

"Neat Receipts"--a scanner that just scans them & files in your computer.

Reply by NVLSlady/VA on 8/23/12 8:49pm
Msg #431748

Re: Marian in CA swears by the device that's called

I also have the Neat Receipts scanner, but the funny thing is I DON'T use for Receipts!
It also scans single sheets of paper. As for receipts, I've learned to organize on a sheet of paper, scotch tape as many as will fit. Then I can hole punch for binder storage (when/if they every make it there)