A receipt is the evidence that an expense happened as claimed, and the rules about when one is required are more precise than most small businesses realise and less demanding than many assume. This page is for the small business owner setting the receipt rule in the policy and the claimant keeping them: when a receipt is required by the regulations, what it has to show, how electronic receipts and photographs are treated, and the practice that keeps receipts findable when a claim is queried or the accountant asks. The expense report template on this site flags the lines that need one.
When a receipt is required
Under 26 CFR 1.274-5, documentary evidence such as a receipt is required for any expenditure of $75 or more, and for any expenditure for lodging while traveling away from home at any amount. Below the threshold the expense still has to be substantiated as to amount, time, place and business purpose, which the expense report's line does; the receipt is the documentary proof for the larger amounts and for every hotel bill. The policy may require receipts at a lower threshold, and many do.
What an expense receipt has to show
The amount, the date, the payee and, for meals and travel, enough to establish the place. The business purpose is written on the claim line, not on the receipt. A card statement line shows amount, date and payee and is often accepted for small items; an itemised receipt is the stronger record and the one to require for meals, so the accountant can see what was bought when the deduction limit applies.
Electronic receipts and photographs
An emailed receipt, a PDF invoice, a photograph of a paper receipt: each is documentary evidence if it is legible and shows the required details, and each is easier to find in a year than the paper. The practical rule is to capture the receipt the day it arises, attach it to the claim line, and keep the file with the claim. A photograph taken in the car park is worth more than a paper receipt filed nowhere.
Setting the threshold in the policy
State the regulatory floor and the business's own threshold, which may be lower, and say what happens when a receipt is missing: a signed statement of the details, a lower limit on what will be paid without one, or refusal above a stated amount. The expense policy builder on this site writes the section. A threshold nobody knows produces claims nobody can approve.
Keeping them findable
One place per month, named by claimant and period, with each receipt attached to its claim line. When a query or an audit asks for a receipt, the answer should be a filter rather than a search. PerDiemDesk Pro, at $4 per month for the whole team, keeps every receipt against its line, its claim and its period; the free template flags the lines that need one.
Questions people ask about expense receipts
Do I need a receipt for every expense?
The regulatory floor is any expenditure of $75 or more and all lodging; the policy can require more. Every line still needs amount, date, place and purpose on the claim.
Are electronic receipts accepted?
Yes, if legible and showing the required details. A photograph of a paper receipt attached to the claim line is the practical standard.
What if an expense receipt is lost?
The policy decides: a signed statement of the details, a limit on what is paid without one, or refusal above an amount. Write the rule before it is needed.