Keeping your records has three major benefits:
- Firstly, if anyone comes checking you can always back up your claim
- Secondly, you can be certain that you've picked up all your expenses. Having the invoices or receipts ensures you are not forgetting anything. How often do we buy something, that is an expense, and throw the receipt into the never ending black hole only to be forgotten forever. Even the little amounts add up, always retain your receipts.
- Lastly, you may need to validate the expense. The description of the goods can be bought to question sometimes.
It's good bookkeeping practice to retain your documentation. Document retention if for five years from the date you lodge your income tax return.
It's always a good idea to take a photo of the receipt or use the CES App to record the transaction.