Keep all receipts for business expenses, customer invoices, vendor bills, bank and credit card statements, payroll records, loan documents, contracts, and tax returns. The IRS requires documentation for every business expense you deduct.

Receipts should show the date, amount, vendor, and what was purchased. Credit card statements alone aren’t enough because they don’t show what you bought. Save actual receipts, whether paper or digital.

Keep records for at least seven years. The IRS can audit returns going back three years normally, six years if they suspect substantial errors, and indefinitely if they suspect fraud. Seven years covers most situations.

Organize receipts as you get them, not when tax season arrives. Digital storage with cloud backup is better than shoeboxes. You can find things when you need them and nothing gets lost in a flood or fire.

Keep personal and business records separate. Mixed records create tax problems and make audits harder to defend.