Whether you are managing a business or running a home, it is easy to become overwhelmed by receipts. Every single transaction comes with a receipt, from a tank of gas to a new set of tires. Knowing what to keep and how to organize your receipts can make returns, record keeping, and tax preparation much simpler. Here are a few thoughts to consider:
Choose something to contain the mass of paper. Here are a few traditional and not-so-traditional options:
- Glass jar
- File folder
- Empty tissue box
Once you’ve decided how to contain the paper flow – it’s a good idea to choose a way to keep it all organized. Essentially there are two schools of thought: organize receipts by month or organize by category.
Organizing your receipts by month is a quick way to categorize your receipts, but it may take you longer to find a receipt when you are looking for it.
As your receipts come in, place them into a container, folder or envelope according to their category. You can be as broad or as specific as you want. For example, you can put all of your receipts for your home care and maintenance into one container for the year. Or you can break that up into smaller categories such as landscaping, home repairs, purchases, large projects, etc. The more specific you are – the longer it will take to set up and sort your receipts, but the easier it will be to find something when you need it.
You may want to get rid of paper clutter entirely and take your receipts digital. There are a variety of apps available that you can quickly download to your phone. You can use the app to photograph, sort, organize, and store all of your receipts. Here is a brief list of available receipt tracking apps to consider:
- Shoeboxed Receipt Tracker
- Receipts by Wave
If the idea of organizing your receipts is overwhelming, the best thing to do is make an appointment to visit our office in Willow Grove. We can help you find a system for your home and/or business receipts that is easy and logical.