Do’s and Don’ts for Saving and Storing Business Receipts

For family child care providers, receipts are more than scraps of paper. They are proof of your expenses and a powerful tool for protecting your business at tax time. The IRS requires you to keep receipts for at least three years after filing, and in some states, it is four. However, since receipts often fade, it is easy to lose the details you need when they matter most.

Here are some practical do’s and don’ts to help you recover faded receipts and keep future ones in good shape.

Do’s

Do digitize right away
Take a photo or scan receipts as soon as you get them. Save them in a folder on your computer, external drive, or cloud service.

Do use editing tools
If a receipt has faded, simple edits to brightness and contrast in photo or scanning software can make the text easier to read.

Do test gentle heat
Receipts are printed with heat-sensitive ink. Using a hair dryer on low or pressing lightly with a warm iron under a thin towel can sometimes revive faded writing.

Do store them carefully

Keep receipts in a cool, dark, dry place. Use acid-free envelopes or folders and store them flat, rather than folding them.

Do check them regularly
Review your stored receipts every few months and update digital backups so nothing gets lost.

Don’ts

Don’t rely on bank or credit card statements alone
The IRS requires actual receipts to prove purchases. Statements by themselves are not enough.

Don’t leave receipts in your car or wallet for long
Sunlight, heat, and friction can erase the ink faster than you think.

Don’t skip backups
Even if you scan receipts, ensure that those digital files are backed up in more than one location.

Don’t wait until tax season
By then, faded receipts are harder to recover. Prevention and regular maintenance save time and stress.

The Bottom Line

Do protect your receipts, and don’t assume they will take care of themselves. A little extra effort now means you will have clear, legible proof of your expenses when tax season or an audit comes around. That peace of mind lets you focus on what matters most: running your child care business with confidence.