Paper and the IRS

Many times prospective clients have asked me, “But don’t I have to keep the paper copies for the IRS?”

I am a virtual bookkeeper. That means I don’t go to clients’ offices very often; almost all the bookkeeping work I do for them is done from my office. This requires clients to share receipts, bills, and other documents with me in digital form. This system works very well because it (a) eliminates travel time, allowing me to serve clients more accurately and in less time, and (b) for disaster recovery purposes, creates a digital copy of important documents which is stored offsite.

Yes, the IRS accepts digital receipts and other documents. Read the official IRS publication, or Google “IRS ruling on digital receipt copies” to locate numerous articles by CPAs and other tax professionals for verification.

And if you don’t want to scan all those receipts, invoices, bills, and other documents yourself, I highly recommend either Hubdoc.com or Shoeboxed.com. (These services are included free for all my clients.)

Posted in Digital Documents.