What are the advantages and disadvantages of keeping your receipt?

Question

Best answer goes to those who are specific.

Answer 1

advantage - you can track spending for records and tax purposes.

disadvantage - fills up wallet needlessly

Answer 2

Advantages: Extra work for your paid accountant means more lobster dinners for him

Disadvantages: Have to buy more storage space for all those receipts.

Did you know that in Europe, ATM's don't even spit out receipts?

For the most part you don't need receipts for everything, even if you are worried about an IRS audit. For most business expenses, receipts are not necesssary as long as there is other documentation, such as good accounting records.

The IRS requires for certain expenditures, like meals and entertainment and auto expenses, proof in writing, but it doesn't have to be a receipt. It can be sales orders with notations of expenses relating to the sale, it can be logs, or other contemporaneous notes.

I usually keep receipts until the bank or credit card statements come, then I toss the original receipts.

WealthBuilder
Tax Advisor

Answer 3

Let's see;
5 receipts a day, 30 days a month;
that's 5*30 = 150 receipts a month.

Pros:
1. Good way to track spending.
2. If you later need proof of purchase for return/exchange, you have that key receipt which is usually required for a product return.
Con: You have to organize and save 150 small pieces of paper each month.

Second thought of efficiency... If you have a scanner, just put all receipts in a box and then on a weekly or monthly basis, scan them to your computer and throw away the receipt. Then if you later need the receipt, just print out the optical record of your receipt and that will probably suffice.

Answer 4

First of all keepimg your receipt is proof you paid, use it for the time you
should ever have to return product or product does not meet specs or
just quits for any reason. Tax write-off if you've purchased a lot of goods
or big money items you might be able to claim on tax return.Should you
ever wonder how much you paid for something, need to balance check
book or check credit card purchase you'll have the proof.

I can't see any disadvantage in saving, except for hanging onto the paper
which is a pain in the butt. In the long run hanging onto that receipt may
save a lot of future headaches.

Answer 5

there are several advantages to keeping receipts. If you are itemizing you will need them and if you every get audited you would need them for proof of your expenses or claims.

Answer 6

If it is for a tax deduction,
then if you are audited you have proof for the IRS.

If it's for your personal expenses, it is to compare to your credit card charges, or cash debit charges if you use those items.

IRS rules - 7 years of tax returns should be kept, unless they have reason to believe you have committed FRAUD.
If you have a pattern of "fraud" as the IRS determines, then they may audit you for any timeframe the IRS chooses.

GOD bless.
CPA-return

Answer 7

not much use unless you have a mountain of them ....you only get a percent of it back IF YOU HAVE ENOUGH!