Which Receipts to Keep and How to Scan Them

A deduction you cannot support is a deduction you may lose. Here is what to keep and an easy routine for keeping it.

What to keep

IRS Publication 583 says business owners must keep records that support the income, deductions, and credits on their returns. In practice, that means:

• Sales records: invoices, sales slips, deposit records, and 1099 forms you receive.
• Expense records: receipts, paid bills, and invoices.
• Proof of payment: bank and credit card statements, which show that you paid, though they usually do not show what you bought.
• Asset records: purchase documents for equipment and vehicles.
• Payroll and contractor records, if you have them.

For each receipt, make sure the date, the amount, the seller, and what you bought are clear. If a receipt does not show the business reason, write it on the receipt or in your bookkeeping software.

How to scan

1. Make it a routine. Scan receipts weekly, or snap a photo with a bookkeeping app when you get them. Thermal paper fades, so do not wait.
2. Check legibility. Make sure the whole receipt is readable.
3. Name files clearly, for example “2026-11-05_office-supplies_staples”.
4. Link or attach the image to the transaction in your bookkeeping software.
5. Keep a backup in a second place, such as an encrypted cloud folder or an external drive.

Publication 583 includes rules about storing records electronically. Read the current version, or ask your preparer, before you discard original paper records.

How long to keep records

The time limit depends on the record. The general IRS period is three years from when you file, and some records must be kept longer. See the IRS page How long should I keep records?

Want a hand with your records? Book a call with FlowTex.

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Sources

• IRS: Publication 583, Starting a Business and Keeping Records
• IRS: How long should I keep records?

This article is general information, not tax advice. Talk to a qualified professional before discarding original records.