is a bank statement good enough for taxes or do you need receipts?

I do it the old fashioned way, Stuff envelope on a per mo. Basis, then quarterly, after sorting out fuel receipts, doing fuel taxes, I organize and record each mo. Then back into the envelopes, A few hours, every 3 mos. not bad. If audited, I doubt they’ll want to dig through very much, just spot check. But if they want to dig, it’s all there.

 

I give my accountant receipts if I have them or bank/CC statements with the business charges highlighted. I'll also total everything up by category for her to make it a little easier.

 

I use quickbooks online. Its linked to my business bank account, I select the category for each incoming or out going money ad what they were (income, repairs, food, taxes, etc). Then come tax time you can link your account for your accountant to look at anything in there. Dead simple for me as a one man band.

 

QuickBooks is great.

Do you scan the receipts themselves into something like neat receipts, or do you just save them in envelopes per month?

 

The quickbooks mobile app allows you to take pics of the receipts and match it up.

 

I was attaching copies of receipts to transactions in QB for a while then finally gave up and just keep the receipts in a file sorted by month. If I ever get audited I can find a transaction receipt easy enough that way.

 

I have a older nest receipts (free to use). Had my accountant set it up the way she wanted it. Every weekend I scan everything in. Then back up to a thumb drive.

At the end of the year I just give her the thumb drive. Come back the next day and my taxes are done

 

I think it’s a good idea to have a separate email account for just your online purchases like amazon, eBay, or Home Depot or Uber rides.
Or forward all your old ones into that one email so not everything gets mixed up

 

I don't even save my receipts on the hard drive any more. I upload them to the One Drive - Microsoft cloud which comes with their Excel subscription. This way I don't worry about back ups and crashes. All the hard copies I keep in a 20 packet document case. Same thing with invoices, rate confirmations, BOLs. Easy to access from everywhere. I don't care if it ever is hacked... I am not NASA.

 

Quickbooks plus save all receipts in case of an audit.