Expenses are the costs you incur (other than purchases) to carry on your business. Your supporting documents should show the amount paid and that the amount was for a business expense. Documents for expenses include the following.
Canceled checks.
Cash register tapes.
Account statements.
Credit card sales slips.
Invoices.
Petty cash slips for small cash payments.
 |
A petty cash fund allows you to make small payments without having to write checks for small amounts. Each time you make a payment from this fund, you should make out a petty cash slip and attach it to your receipt as proof of payment. |
Travel, transportation, entertainment, and gift expenses
Special recordkeeping rules apply to these expenses. For more information, see
Publication 463.
Employment taxes
There are specific employment tax records you must keep. See
Publication 15.
Information courtesy of the Internal Revenue Service.
