Do you need receipts for expenses under $100
Do you need receipts for expenses under $100?
Hi Anyone,
I'm a bookkeeper. I have a client that says they heard that business expenses less than $100 don't require a receipt to claim the GST. In this situation what should I be telling my client?
Well, if it were me, I'd tell them that it was my understanding that you did need to provide receipts and direct them to CRA's website about their receipt requirements.
I've summarized them here:
https://www.bookkeeping-essentials.com/audit-trail.html#legit
Meals and entertainment have another option discussed here:
https://www.bookkeeping-essentials.com/tax-deduction-checklist.html#meals
Unless it is an expense where receipts are not issued but it known that the un-receipted expense includes GST/HST, I tend to not claim ITCs if I don't have a supporting receipt. I talk about what to do when you don't have a receipt here:
https://www.bookkeeping-essentials.com/audit-trail.html#noreceipt
In the U.S. it's a slightly different ball game. Renee Daggett, EA at Admin Books shared this May 18, 2012 tip on FaceBook ...
"For travel and entertainment expenses (other than lodging) receipts are generally NOT required for expenses below $75. You still need to show the time, place, amount and business purpose."
If you are a self-employed bookkeeper, you have to set your own standards of quality for the work you produce. I personally require my clients to provide a receipt if they want a deduction as I produce audit-ready books for my clients.
Return to Self-Employed Bookkeepers.