Keeping Track of Receipts: Keep It Simple

by tallchris on Flickr

Ok, I have a pile of receipts in my wallet right now.  It’s not that I don’t have a place for them, because ohhhh I do.  It’s just that it’s time they vacate their home in my handbag and go to where they need to be.

So, how can you handle receipts?  Here’s some ways to manage receipts other than dumping them in the “circular file” or shoving them in your jean pocket (you know who you are).

Know your receipt categories, and treat them accordingly.

There’s really two categories of receipts: Action & Archive:

Action = data entry or review.  These you need to deal with in some way, like entering them in QuickBooks, a good old fashioned spreadsheet or folder for passing onto your friendly neighborhood CPA or accountant.  Put them in a folder marked “Action” and set aside a day of the week to take care of them. (Neat Receipts is also a great way to deal with this category quickly and easily).

Archive = needed for reference (80/20 rule applies here).  You may need them for tax purposes (by the way, scanned images are ok too) or for a client project expense tracking, etc.  Use the simplest form of archiving possible, and one you feel comfortable with.  Remember, you’ve only got a 20% chance of looking at these again (see “Action” above), so keep it simple.  Any of the following will work:  accordion file by month or category (i.e. utilities or business expenses), a file drawer or a file box marked “Archive” (receipts are tossed in after data entry).

Receipts can easily get out of control if you are a busy mobile or home office professional.  So, here’s a bonus tip: have an envelope in your handbag or briefcase to corral them.  Once you get home (or your envelope is full), take them out and separate into one of the categories above.  Simple and easy to do.  Isn’t that how it should be? 

Now, I’ve got some receipts to go deal with …