In the case of a tax audit, you will have an easier time finding a receipt if you filed all your 2019 hotel receipts together instead of dumping all your receipts in one file or shoebox.
So, here's a twist to that system – call it the hybrid shoebox system: Kevin Hedrick, CPA and Tax Partner at Williams, Benator & Libby in Atlanta, recommends filing expenses in categories such as hotel receipts, rental car receipts, airfare, etc., then summarizing them in a spreadsheet for your accountant or for your own reference when doing expense reports. But at some point, someone is going to have to go through all those receipts and turn them into an expense report or a tax return. Whenever you need to find a receipt, you always know where it is. You have a designated shoebox in a designated place in your house. The proverbial shoebox -– it's fast, it's easy, but boy, will you have some work to do when you have to report your expenses or file your taxes. It really doesn't matter what system you use as long as you can keep things organized so you don't create a lot of work for yourself at year end. Whether by shoebox, spreadsheet or smart phone app – Get yourself organized!Īs a self-employed physician or advanced practice provider, you'll need to have systems to keep track of your budgets, your expenses and your receipts.