BOOKKEEPING TIPS is a twice monthly e-letter published by The American Institute of Professional Bookkeepers (AIPB), Suite 500, 6001 Montrose Road, Rockville, MD 20852. Tel.: 800-622-0121, Fax: 800-541-0066, email: info@aipb.org.

March 1, 2005

Backing Up Your Expenses at Tax Time
3 ways to prove an expense if canceled checks are lost

You know that your company or client (or you) incurred and paid that expense—but you have no way to prove it because the canceled check was lost. What can you do?

Here is a useful tip from "Better Bookkeeping in 15 Minutes—25 Best Bookkeeping Tips of 2005" (www.aipb.org/member_benefits2.html), the free report given to all new members of AIPB.

Tip #20: The IRS accepts as proof of an expense, a canceled check—or:

1. An account statement showing the check has cleared and. . .
Check number
Amount
Payee’s name
Date the amount was posted to the account by the financial institution.

2. An account statement showing an EFT wire and . . .
Amount transferred
Payee’s name
Date the transfer was posted to the account by the financial institution.

3. An account statement showing a credit-card charge and . . .
Amount charged
Payee’s name
Date charged (transaction date)

This publication is designed to provide accurate and authoritative information in regard to the subject matter covered with the understanding that the publisher is not engaged in rendering legal, accounting or other professional services. If legal advice or other expert assistance is required, the services of a competent professional should be sought. – From a Declaration of Principles jointly adopted by a Committee of the American Bar Assn. and a Committee of Publishers. --------------------------------------------------------------------------------

Copyrighted 1999-2008 All Rights Reserved
  Privacy Policy    Terms of Use   Most Recent Traffic Information

This page last modified: 11 Mar 2008