Managing your finances will keep you preoccupied all year round. If you are not consistently maintaining an updated and accurate record, you can encounter more challenges later. We’ve consulted some of the top financial experts in the market today. They mentioned six types of receipts that a typical household needs to keep. You can avoid unnecessary stress and headaches by knowing what receipts to keep.
6 Types of Receipts to Keep
While we understand that tracking all the receipts you receive daily is difficult, be sure you will have a physical copy of the personal and business receipts we will list here. If you can’t secure one, you should at least have a digital copy. Let’s start enumerating those receipts to keep.
1. Self-Employment Related Expenses
Saving the receipts on expenses related to your self-employment will help you save effort, time, and money. Did you know that most of these expenses are tax deductible? Your travel-related cost, insurance, marketing cost, etc., can be written off. There are also instances when your home-based business and utility expenses are covered. Running a business could be costly. Whether you have a startup or a growing business, you need to keep track of all your expenses to understand your financial assets better. Knowing what receipts to keep to save dollars can significantly help.
2. Major Purchases
Major purchases do not have to be expensive; it can be something as big as upgrading your technology system, but it can also be as simple as buying a dishwasher. Since most items will have a return policy, you need to hold on to this. You can return this to the store if the item is defective or if it does not suit your system but within a predetermined timespan. These receipts to keep can be used to exchange an item for something more essential for your business is much simpler.
3. Guarantees and Warranties
Purchases related to guarantee and warranty must be kept for as long as the terms still apply. This allows you to get a replacement or a refund on an item if it is defective or isn’t functioning as expected. Under some circumstances, you are also qualified to receive free repairs.
4. Repairs Receipts to Keep
Keep the receipts for all the repairs done to your residential or commercial establishment. If the repair is not done based on the market standard or if you are not happy with the service you received, this receipt will help you get a refund. Keep a digital copy of this receipt since this will be valid even years after the repairs.
5. Childcare Expenses
Heads up to all parents; other receipts to keep is for all childcare-related expenditures will qualify you for a tax credit. Any cost paid to the nanny, preschool program, after-school program, day camp, babysitter, etc., are all legible. However, this may only be valid if the parents’ reason for availing of the service is to look for a job.
6. Charitable Donations
Contributions you’ve given to any recognized charitable or non-government organizations are tax deductibles, but only if you still have the receipts. On average, people can deduct as much as 50% on their AGI or Adjusted Gross Income.
Experts advised saving the receipt for all the expenses in the past seven years. It could be a proof of payment or a proof of purchase. These receipts to keep will help you be qualified for tax-deductible, refunds, or replacement of items. This will help small businesses save some cash.