Do you have a huge pile of business receipts that you don’t know what to do with? Are you worried about being audited because you can’t find a receipt for a specific purchase? No worries, we will teach you how to organize and file your business receipts. Read more to learn tips on how to create a system that works for you and how to save time and money.
Type Of Filing System
There are a few things to consider when setting up a system to organize your business receipts. The first thing you need to think about is what type of system you want. You can either go with a paper-based system or an electronic system. If you choose a paper-based system, you will need to invest in some supplies such as manila folders, a filing cabinet, and labels. An electronic system will require you to scan your receipts and store them on your computer or in the cloud. You will also need to decide how you want to organize your receipts. One option is to organize them by date. Another option is to organize them by category. Whichever method you choose, make sure it is easy for you to understand and follow.
Start Sorting Receipts
Once you have decided on a system, it is time to start sorting your receipts. You can do this by putting them in chronological order or by grouping them by category. If you choose to organize them by category, create a list of categories that makes sense for your business. For example, you might have categories such as office supplies, marketing expenses, and travel expenses. Once you have your receipts sorted, it is time to start filing them away. Make sure to label each folder or file so you can easily find what you are looking for.
Now that you have a system in place for organizing and filing your small business receipts, you can rest easy knowing that you are prepared in case of an audit. You will also save time when you are looking for a specific receipt. Organizing your receipts may seem like a daunting task, but it is well worth the effort.