Organizing Receipts for Business Expenses
Even though the focus of PHA is on moving and relocation to provide organized moves in San Francisco, Los Angeles and New York City – PHA also works with many other clients and their varied organizational needs. And, I am often asked how I manage all of my receipts for my business.
Here’s how PHA typically organizes business receipts for data entry or to give to my CPA:
The categories used for organizing the different types of receipts are based on my business’ Chart of Accounts – The chart of accounts is usually determined by the CPA or other tax professional when a business first becomes active.
Sort and organize – into those categories by separating into different piles… auto expenses are broken down into separate sub-categories: tolls; auto repairs; fuel, etc. Another set of piles is for supplies – this is generally broken down between office supplies and other supplies based on industry. You get the idea….
Payroll receipts…is an extremely important category because of quarterly tax payments that are required by City, State and Federal governments. Also, if you use a payroll company, the vendor cost to them is usually split into different categories – the actual cost of payroll to the employee; the taxes paid by the employer; taxes paid by the employee; cost to mail checks to business; cost to direct-deposit (if using) paychecks; and the monthly cost of the service.
Keeping those receipts neat – PHA does not like uneven piles of receipts… they become cumbersome in a filing cabinet; there is an increased risk of losing something; and it just doesn’t look nice!
Here’s my tip – use scrap paper sheets, tape the receipts to the sheet like you see in the photo. Keep your sheets organized by account number and don’t forget about CASH – many times those purchases are tax deductible.
When your monthly bank or credit card statement arrives (and we will talk about electronic organization in another post!), place the appropriate sheets of receipts behind the statement.
By having everything organized by month, and by account, your bookkeeper or tax professional will have an easy time reconciling your information.
Happy Organizing! And, remember, an organized move is a happy move