Tired of having your travel and entertainment receipts in disarray? Make organizing them one of your New Year’s resolutions, says certified public accountant Robert DeLellis, owner of DeLellis Accountancy Corp. in Camarillo, California.
– Keep a log or diary of your T&E expenses as you go. This is definitely necessary for expenses under $75. For costs under $75, the IRS no longer requires receipts, but you should keep a record as proof of the expense. The log must include the date and place of the meeting, the name of the person(s) you met with, what you discussed and how much was spent.
– Use credit cards to keep track. Although statements will not list all the required information, it will include the date, place and amount. “Cash and traveler’s checks are a no-no these days. They don’t provide any trackable information,” says DeLellis. Stash your receipts inside your airline ticket envelope.
– Always keep a log of your automobile travel. “Note the mileage, where you went, the people you met with and why.”
– Use a monthly worksheet to total up your expenses. Also look into using computer software. DeLellis recommends Quicken for individuals and QuickBooks for small businesses. “You can e-mail your entire file to your accountant or use the program to organize your own worksheet,” he notes.