It’s an overused cliché in movies: a client arrives at his accountant’s office and dumps a shoebox full of receipts on the desk, fistfuls of white paper spilling over the sides. If you regularly keep receipts and documentation for tax write-off purposes, this scene may sound familiar. But it doesn’t have to be—much of our daily business has gone virtual, with loan statements, bank statements, credit card accounts, and even tuition bills delivered via email or on a secure server online.
Interested in going digital? Here’s what you need to know.
Invest in a good scanner.
The IRS was actually ahead of its time when it began accepting scanned receipts in 1997, in a rule called Revenue Proclamation 97-22. But the documents need to be legible, clear, and easy to access—which means that if your receipt is bunched, blurred, or otherwise illegible on your screen, it will likely be rejected, or … Read More