Supporting Business Documents
Purchases, sales, payroll, and other transactions you have in your business will generate supporting documents such as invoices and receipts. Supporting documents include sales slips, paid bills, invoices, receipts, deposit slips, and canceled checks. These documents contain the information you need to record in your books. It is important to keep these documents because they support the entries in your books and on your tax return. You should keep them in an orderly fashion and in a safe place. For instance, organize them by year and type of income or expense.

The following are some of the types of records you should keep:

Gross receipts are the income you receive from your business. You should keep supporting documents that show the amounts and sources of your gross receipts. Documents for gross receipts include the following:
 

• Cash register tapes

• Bank deposit slips

• Receipt books

• Invoices

• Credit card charge slips

• Forms 1099-MISC
   

Purchases are the items you buy and resell to customers. If you are a manufacturer or producer, this includes the cost of all raw materials or parts purchased for manufacture into finished products. Your supporting documents should show the amount paid and that the amount was for purchases. Documents for purchases include the following:
 

• Canceled checks

• Cash register tape receipts

• Credit card sales slips

• Invoices
   

Expenses are the costs you incur (other than purchases) to carry on your business. Your supporting documents should show the amount paid and that the amount was for a business expense. Documents for expenses include the following:
 

• Canceled checks

• Cash register tapes

• Account statements

• Credit card sales slips

• Invoices

• Petty cash slips for small cash payments
   

Travel, Transportation, Entertainment, and Gift Expenses
If you deduct travel, entertainment, gift or transportation expenses, you must be able to prove (substantiate) certain elements of expenses.

Assets are the property, such as machinery and furniture, that you own and use in your business. You must keep records to verify certain information about your business assets. You need records to compute the annual depreciation and the gain or loss when you sell the assets.

Employment taxes
There are specific employment tax records you must keep. Keep all records of employment for at least four years. For additional information, refer to Recordkeeping for Employers.

In addition, you must keep supporting documents, explained in the pop-up windows below.

• Supporting Documents
   

• Gross Receipts
   

• Purchases
   

• Expenses
   

• Assets
   

• What if I don't have a canceled check?

Note: See also, "Records Retention" for how long to keep supporting records.