Receipts Explained In addition to showing ownership, receipts are important for other reasons. For instance, many retailers insist that a customer must show a receipt to exchange or return items while others demand that a receipt—generally issued within a certain timeframe—be produced for product warranty purposes. Receipts can also be important for taxes because the IRS requires documentation of certain expenses. The Internal Revenue Service (IRS) suggests that the following types of receipts if generated, be retained by small businesses: Gross receipts such as cash register tapes, deposit information (cash and credit sales), receipt books, invoices, forms 1099-MISC Receipts from purchases and raw materials (These should show the amount paid and confirm that they were necessary business purchases; documents could include canceled checks or other documents that identify the payee, amount, and proof of payment/electronic fund transfers.) Cash register tape receipts Credit card receipts and statements Invoices Petty cash slips for small cash payments
