In every business transaction, there is a need for a proof of purchase which might be beneficial for the paying party. This proof is presented as a piece of paper with information of the transaction and the payment that transpired. This paper is what we call receipts, particularly, the business receipts.
Examples of business receipts as shown on the templates of this website are deposit receipt and acknowledgement receipt. Knowing how to handle these receipts will be quite beneficial to your endeavors. Learn how to organize your business receipts.
Why You Need to Keep Business Receipts
Businesses keep the receipts as evidence to support financial and management reports. In terms of personal receipts of individuals, the following are the reasons these documents need to be kept:
- Reimbursement – There are instances in which you pay using your personal funds for work expenses. The receipts to these expenses can be your submitted so you can receive reimbursement from the company.
- Returns and Exchanges – A purchased item that has been found defective can be returned or exchanged for another by using a receipt.
- Concrete Evidences – Receipts can be used as supplementary documents when dealing with taxes, warranties, and the like.
- Budgeting – Keeping receipts would help you monitor your expenses for yourself or your home.
How to Keep Your Business Receipts Organized
An entity has two options in order to organize a company or an individual’s business receipts, similar to the receipt formats shown on the printable receipt templates:
- Manual Organizer – This pertains to the manual filing of business receipts into folders in filing cabinets. This may be effective but some receipts fade with time, making it impossible to make out any detail.
- Digital Organizer – Another option is to use the power of technology. Although most business receipts are still issued in print due to state regulations, you can still digitally record these receipts by scanning them and saving them as digital files.
How Long Must Business Receipts Be Kept
The duration with which business receipts are kept depends on the nature of the receipt. This is why there is a variety of receipt templates available online. Depending on the type of receipt, it can be kept for:
- One Year – Business receipts to be kept only for one year are those used for reconciliations and statements to be incorporated in the company’s reports. Examples are ATM receipts and deposit slips and monthly/quarterly bank statements if a year end statement is given by the bank.
- Three Years – Income related receipts, deductible purchases and expenses and receipts for donations to charity should be kept for three years as supplementary document of tax returns.
- Six Years – Those receipts to be kept for three years can be kept for six years in case of fraudulent issues together with federal tax returns and payroll records.
- Indefinite – The following business receipts are essential documents of the business and should be kept indefinitely:
- Partnership documents and other contractual agreements
- Property Documents together with Deeds and Titles of Plant Assets
Business receipts are essential tools to prove the authenticity of an entity’s purchases. Aside from that, receipts also aid on the management of expenses of an entity. The free receipt templates on this website provide different examples of business receipts you can look into for your reference.