Why do receipts get lost?
Because you get them at the worst possible moment: in a hurry, between jobs, with your hands full. They go on the dash, in a cup holder or in a jacket pocket, and that's the last time you see them.
The fix is a habit that takes less than a minute and happens right at the register, before the receipt has a chance to disappear.
What's the simplest way to track receipts?
Four habits: snap it, tag it, keep business separate, and check once a week. That's the whole system.
- Snap it. Take a photo of the receipt before you leave the store. Make sure the store name, date, items and total are readable.
- Tag it. Write the job name on the receipt or in the photo caption: "Miller deck," "Shop," "Truck."
- Keep business separate. Pay for business purchases with a business account or card whenever you can.
- Check once a week. Ten minutes to match receipts to jobs and catch anything missing.
Keep all the photos in one place: one album, one folder or one app. If receipts live in three places, you'll be hunting for them later.
What should you write down for each expense?
Six things: the date, the store, the amount, what it was, which job it was for and how you paid. Most of that is already on the receipt. You only add the job and, if it's not obvious, what the items were for.
| Field | Example |
|---|---|
| Date | Nov 10 |
| Store | Hardware store |
| Amount | $86.00 |
| What it was | Deck boards and screws |
| Job | Miller deck |
| Paid with | Business card |
Example entry.
For anything without a paper receipt, like a parking fee, a tip to a dump attendant or a cash purchase from a supplier, write a quick note on your phone right away with the same six fields.
How do you tag expenses by job?
Give each job a short name you'll recognize later, like the customer's last name plus the job: "Miller deck," "Lopez faucet." Use the same name on the estimate, the receipts and the invoice.
Not every cost belongs to a job. Use two extra tags for the rest:
- Shop: things you use across jobs, like blades, bits, gloves, caulk and tape.
- Truck: fuel, maintenance and repairs.
Tagging by job does two things. It shows you which jobs actually made money once materials are counted. And if your estimate bills materials separately, it gives you the receipts to back up that line. More on that in what to include in a handyman estimate.
Should you keep business and personal expenses separate?
Yes. A separate checking account or card for the business is the single biggest time-saver in this whole list.
When everything goes through one personal card, the weekly check turns into a puzzle: was that hardware store run for the Miller job or the kitchen at home? With a separate account, everything on the statement is business, and you only need to tag it by job.
If you do buy something for work on a personal card, mark it as business on the receipt right away. What counts as a business expense for taxes is a question for a tax professional, so ask one rather than guessing.
What does a 10-minute weekly receipt routine look like?
Pick the same time every week, like Friday after the last job or Sunday evening, and run through five steps.
- Empty the truck. Collect paper receipts from the dash, the console, your wallet and your pockets.
- Check your email for online orders and e-receipts from suppliers.
- Make sure each one has a photo and a job tag. Fix any that don't.
- Compare with your bank or card statement for the week. Every business charge should have a receipt. Flag the ones that don't while you still remember them.
- File the paper in one envelope or folder per month, if you keep paper.
Ten minutes a week is a lot easier than a full weekend of sorting at the end of the year.
Missed a week? Don't try to rebuild it from memory. Start from the bank or card statement, since every charge is already listed there with a date and an amount. Go down the list, find the receipt or the order email for each business charge, and tag it. Anything you can't explain, write a note next to it now, while it's still only a week or two old.
What's the difference between billed, received and spent?
Billed is what you invoiced. Received is the money that actually reached your account. Spent is what went out for the business. They're three different numbers, and mixing them up is how a busy month ends with an empty account.
Once a month, put the three side by side:
| This month (example) | Amount |
|---|---|
| Billed | $4,200 |
| Received | $3,100 |
| Spent | $640 |
Example numbers.
In this example, $1,100 that you billed hasn't come in yet. That's your list of people to remind about payment. And an estimate a customer approved isn't billed yet either. Track those separately, and if some are still waiting on an answer, here's how to follow up on an estimate.
How long should you keep receipts?
Keep records that support your income and your expenses, and ask a tax professional how long to keep them for your situation. The rules depend on what the records are for.
The IRS explains recordkeeping for small businesses, including what kinds of records and supporting documents to keep, in Publication 583, Starting a Business and Keeping Records. It's a good place to start before you talk to your tax pro.