Receipt Management for Small Businesses: A Complete Guide
Receipts are tiny pieces of paper with big consequences. A simple system helps you track expenses, stay audit-ready, and understand your cash flow.
Why receipts matter
- Taxes: receipts support deductions and validate expenses.
- Bookkeeping: accurate categorization makes reports trustworthy.
- Cash flow: seeing where money goes helps you plan and cut waste.
- Reimbursements: if you pay personally, you’ll need proof.
A simple 4-step receipt workflow
1) Capture it immediately
Pick one capture method and stick to it:
- Photo the receipt as soon as you get it
- Save email receipts into a dedicated folder
- Use a small “inbox” envelope if you get paper receipts often
2) Tag and categorize
Create a short list of categories that match your accounting (examples: Office, Software, Travel, Meals, Marketing). The fewer categories, the easier it is to stay consistent.
3) Store in one place
Choose a single “source of truth” (a drive folder, bookkeeping tool, or a secure cloud
storage). Use a naming convention like: 2025-11-20_vendor_amount_category.
4) Review monthly
Set a recurring reminder once a month to reconcile receipts, spot missing items, and confirm categories.
Retention tip
Keep receipts for the period required in your country/region. Requirements vary — if in doubt, ask your accountant.
Common mistakes to avoid
- Waiting until tax season (the “shoebox method”)
- Mixing personal and business receipts
- Not recording what the expense was for
- Losing email receipts in a crowded inbox
Next step: issue receipts consistently
When you receive payment, issue a receipt as proof of payment. It builds trust and keeps your records clean.