Tracking expenses can seem like a chore. However, this is an easy tip to remember when recording your business purchases. You need to answer these five questions:
- How much?
- When?
- Where?
- What’s the purpose?
- What’s the relationship?
While you don’t necessarily need to save receipts for expenses totaling less than $75 (except for lodging), you do need a response to the above five questions.
How much did you spend? When and where did it take place? What was the business purpose of the purchase? And last, what is your business relationship with the guest(s), if it’s meals and entertainment?