If you are managing your own bookkeeping through the use of Quickbooks Online (or any comparable accounting software) there are built in functions that make “audit-proofing” your records easy and comprehensive. When entering expenses, either through the bank feeds or chart of accounts, you have the option to enter information in the “Memo” section. A good rule to have for your business meals is to enter who you had the meal with and what business you met about over the meal on that Memo line. To further consolidate your records you can attach a copy of the receipt to the transaction as easy as dropping a picture or PDF file from your desktop to the box for attachments on the transaction. The memo line will be visible on many of the detail reports available in Quickbooks Online and the receipt attachment will serve to solidify the record as legitimate.

Please note that if you ever convert your Quickbooks Online account to a Quickbooks Desktop file the attachments will not be converted and will be lost. Another reason to use the memo line for your records.

 

Aaron Meyer
Account Manager
GPL Tax & Accounting

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