Top 10 Bookkeeping Mistakes Made by Small Businesses

8. Not Saving Receipts for Small Purchases

The IRS requires that expenses for business travel, meals, and entertainment that are greater than or equal to $75 be substantiated with a receipt in order to be deductible. So many business owners don't bother saving receipts for expenses less than $75.

Doing this can be a big mistake. While such receipts may not technically be required by the IRS, they are extremely helpful as backup documentation. When it's time to sit down with your accountant and start working on your annual tax return, having a receipt for every deductible business expense, no matter how small, will help ensure that you don't overlook any potential deductions.