Expense Receipt Organization
Methods for organizing receipts are as varied as the people who are organizing them. For some people, an Excel spreadsheet to track expenses, combined with scanned receipts stored as image files, is adequate. Others may prefer to keep paper receipts in an easy-to-reference filing system.
If you have a small to moderate number of expenses, consider using an envelope system to store and organize your receipts. Use one envelope per month, labeled with the month and year, and place receipts for all tax-related expenses in the envelope for the month you paid them. After you file your taxes for that year, store the envelopes with your other tax return paperwork. As an alternative to envelopes, use page protectors stored in a three-ring binder to keep expense receipts organized.
The tried-and-true file folder organizational system works well for tax expense receipts, too. You can use one folder per month if you don’t have many receipts to file. If you have a large number of receipts, sort your monthly receipts by type – medical, property, education, etc. – and store them in separate file folders. Create a hanging file for each month to hold the file folders. Regardless of which method you use to organize your expense receipts, keep separate sections for home expenses and investment expenses that you store separately from your yearly files.