4 Important Reasons Why You Need to Keep Your Receipts

Receipts may seem like an insignificant piece of paper cluttering up your wallet or purse. But what if we told you that those little slips of paper hold immense value? Yes, receipts are not just random pieces of paper; they are vital documents that everyone should keep track of, whether you’re an individual consumer, an accountant or a business owner.

In this infographic, find out the four important reasons why you must keep your receipts.

Why is it important to keep receipts?

1. Accurate Expense Tracking:

Receipts are essential for maintaining accurate expense records. By keeping receipts, you can easily track and categorize your spending, whether it's for personal finances or business expenses. It also allows you to differentiate between necessary and unnecessary expenditures.

2. Budgeting and Financial Planning:

Receipts can play a critical role in effective budgeting and financial planning. By analyzing and examining  your purchase history, you can identify areas where you can cut expenses, save money or invest wisely. Receipts can also reveal patterns and trends in your spending habits, enabling you to make adjustments when necessary to achieve a more balanced financial situation.

3. Tax Preparation: 

Receipts are crucial during tax season as they are used to track your business income or expenses. Receipts also provide documented evidence of purchases made during a specific period, enabling accurate financial calculations and tax filing.

4. Record-keeping:

Receipts serve as documented evidence of purchases, which is one of the bases of accountants and other professionals to determine the amount of money spent on various items throughout different time frames, ensuring accurate financial records.
 
By keeping receipts, you can rest assured that you are tracking your spending habits effectively. To make sure you are documenting your receipts properly, scan and save them in a folder on your computer right away to avoid faded receipts. This way, you can easily review them at any time.

Need help in organizing your financial records? You can rely on D&V Philippines. Our accountants use the latest cloud accounting software and follow record-keeping best practices. Contact us at marketing@dvphilippines.com for more information. You can also download our whitepaper, Finding the Right Talents: D&V Philippines’ Solutions to Modern Accounting Firms, to learn more about our services.