How to keep a record of receipts?

A receipt record is only useful if it is complete and consistent. The goal is a system you can maintain without thinking too hard about it, so that every expense is captured automatically.

Decide on a single system

The most common mistake is using several different systems — some receipts in an app, some photographed and left in your camera roll, some in an email folder, and a few paper originals in a drawer. Pick one place and route everything there.

Create a simple categorisation scheme

You do not need dozens of categories. Start with five to eight that match how your tax return is structured. In Australia, common categories include: work-related travel, vehicle expenses, home office, equipment and tools, self-education, and subscriptions.

Record the business purpose

For any expense you intend to claim, note the business purpose at the time of purchase while it is fresh. "Lunch with client — project scoping" is more defensible than trying to remember a year later why you went to a restaurant. Most receipt apps have a notes field for exactly this purpose.

Reconcile monthly

Set aside 15 minutes at the end of each month to check that your records match your bank and credit card statements. This surfaces any missed receipts before they are forgotten entirely.

What counts as a record?

In Australia, the ATO accepts written evidence (paper or digital), bank statements, and credit card statements as records. However, bank statements alone do not prove the business purpose or GST content of a purchase. A receipt is always stronger evidence.

How long to keep records

Keep records for five years from the date you lodge the relevant tax return. For capital items (equipment, vehicles), you may need records for significantly longer.