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What receipts and records should I keep?

What supports your income, expenses and deductions.

The short answer

Keep records that show what happened, when it happened, how much was involved and why it was business-related. A Ledjyr entry organizes the transaction; the receipt, invoice, statement or other document helps prove it.

Your log and your evidence work together

Neither part tells the full story alone. Your ledger summarizes the year, while supporting documents explain the individual entries behind it.

Ledjyr record

The organized entry

Date, amount, category, payer or merchant and a useful business description.

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Supporting evidence

The document behind it

Receipt, invoice, bank record, mileage log, contract or other proof tied to the entry.

What should you keep?

The right document depends on the transaction. Keep enough information for someone unfamiliar with your business to understand the amount and its business purpose.

Income and sales

Invoices, sales reports, contracts, payout statements, deposit records and Forms 1099.

Shows who paid you, what for, the gross amount and when it was received.

Expenses and purchases

Itemized receipts, paid bills, supplier invoices, card statements and canceled checks.

A bank statement proves payment, but may not show exactly what you bought or why.

Travel and vehicle use

Mileage log, dates, destinations, business purpose, parking, tolls and travel receipts.

Record mileage near the time of the trip rather than reconstructing it months later.

Equipment and mixed-use items

Purchase documents, financing records and notes supporting your business-use percentage.

Keep property records longer when they affect depreciation, basis or a later sale.

A receipt alone may not explain the deduction

Add context when the business purpose is not obvious. “Lunch — $48” says very little; a note identifying a permitted business purpose is much more useful.

Weak record

“Office store — $186”

The payment is visible, but the items and business connection are unclear.

  • No itemized receipt
  • No project or business purpose
  • Hard to review later
Stronger record

“Printer ink + shipping labels”

Itemized receipt attached; purchased for customer-order fulfillment on May 8.

  • Amount and date match
  • Items are identified
  • Business purpose is recorded

Capture it once, while it is clear

01Receive

A payment arrives or you make a purchase.

02Record

Add the transaction and correct gross amount.

03Explain

Add the payer, merchant and business purpose.

04Store

Keep the supporting file in a safe, organized place.

Electronic records are acceptable when they remain accurate, accessible and organized. Back up files rather than relying on a fading paper receipt or a single device.

How long should you keep records?

The retention period depends on what the document supports and your circumstances, so there is no single rule for every record.

3 yrs
The common federal starting point—not a universal maximum

The IRS generally describes three years for many ordinary income-tax records. Some situations require longer, including certain refund claims, omitted income, bad debts, employment taxes and property records. Keep documents for as long as they may be needed to support the return or establish an asset’s basis.

What to do in Ledjyr

Make every important entry understandable

  1. Record income and expenses consistently throughout the year.
  2. Use the gross payment amount before platform or processing fees.
  3. Add a specific note when the business purpose is not obvious.
  4. Keep the original supporting document in an organized external folder.
  5. Reconcile Ledjyr with bank and platform statements regularly.
  6. Back up electronic records and preserve property documents for longer when needed.
Read nextHow do I set money aside from each payment?

Official sources

All 23 guides, kept current as tax rules change — included with every plan.

Ledjyr provides estimates for planning. It is not a tax preparer, CPA, or legal advisor. Always verify amounts before paying or filing. See our tax disclaimer.