Should You Keep Receipts as a Nonprofit?

With so many activities and tasks to keep track of, keeping receipts may be a task you do not feel like doing.  It is something that is easy to do… and easy not to do. 😕

If you are a tax-exempt organization, the IRS requires you to keep receipts and support for any income received. 

There are a few ways you can go about keeping and tracking you’re receipts and supporting documents:

🧾Keep them in a file cabinet.  Yes, this may be the “old fashion way” of tracking, but something is better than nothing!

🧾Attach receipts to transaction in your accounting software.  Most accounting software allow you to attach electronically attach documents to transactions.  This is ideal because you can simply click on the transaction in question and the backup document is attached.

🧾Upload receipts and documents to an expense tracker such as Dext, which will capture and store your documents securely.

Remember, the IRS can come to your organization anytime and inspect your books.  You want to be sure you can backup each transaction in your books!

#nonprofit