What proves an ordinary business expense?
Documents that show who was paid, how much, when, and what for. A receipt or invoice describes the purchase; a bank or card statement, cancelled check or payment confirmation proves payment. Together they are strong evidence. A bank statement alone shows payment but not what was bought, so for anything significant keep the invoice or receipt too.
Which expenses need more?
| Expense | Also record |
|---|---|
| Travel away from home | Dates, destination and business purpose of the trip |
| Business meals | Who attended, their business relationship, and what was discussed |
| Gifts | Recipient, relationship and business reason |
| Vehicle use | Mileage log: date, miles, destination and purpose |
| Listed property such as computers used partly personally | Business use percentage |
These items fall under stricter substantiation rules: without adequate records, the deduction can be denied entirely, rather than estimated. See meals, travel and entertainment and vehicle expenses.
What is the $75 rule?
For travel and meal expenses under $75, a receipt is not required, but you must still record the amount, date, place and business purpose, for example in your accounting software or a log. Lodging needs a receipt regardless of amount.
Are scanned and digital receipts acceptable?
Yes. The IRS accepts electronic records, including scans and photos, if they are legible, complete and kept in a system that lets you retrieve them. Many businesses photograph receipts as they go and discard paper. Keep backups.
How should you keep receipts?
Capture at the time
Photograph or forward receipts the same day.
Add the business purpose
A short note for meals, travel, gifts and mixed-use items.
Attach to the transaction
In your accounting software, against the bank or card line.
Review monthly
Chase missing receipts while you still remember them.
Back up and retain
For at least the IRS review period.
What if a receipt is missing?
Ask the supplier for a copy, download an invoice from the online account, or use the card or bank record plus a written note of what was bought and why. For ordinary expenses, reasonable reconstructions can be accepted; for travel, meals, gifts and vehicles, gaps are much harder to overcome.
How long should you keep them?
Generally three years from the date the return was filed, longer in some cases, such as six years if income was substantially under-reported, and as long as you own an asset plus three years after sale. Employment tax records are kept at least four years. See how long to keep business records.
Want audit-ready records?
We set up receipt capture and categorization so every expense in your books is backed by the right documents.
Questions people ask
What does the IRS accept as proof of a business expense?
Documents showing amount, date, payee and what was bought, such as a receipt or invoice with proof of payment.
Is a bank statement enough proof for the IRS?
It proves payment but not what was bought. Keep receipts or invoices too, especially for larger or mixed-use expenses.
Do I need receipts for meals under $75?
No receipt is required for travel and meal expenses under $75, except lodging, but you must still record the details.
Can I keep receipts digitally?
Yes. Legible, complete electronic copies are acceptable.
Sources
Every fee, date and rule on this page was taken from these official and primary sources.
- IRS Publication 463: Travel, Gift, and Car Expenses
- IRS: Recordkeeping
- IRS: How long should I keep records?
- IRS Revenue Procedure 97-22: electronic storage systems
Rules and fees change. If you are reading this long after October 1, 2026, confirm the figures with the source before you rely on them.
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This guide is general information. It is not tax or legal advice for your situation.