As a small business owner, you will want to keep a record of all purchases you make that can be deductible on your tax return. Keep in mind that all records should be kept for about six (6) years from the date the tax return was filed.
For Inventory or Assets purchased, you will need to keep the receipts and/or invoices for all purchases showing the payee, amount and proof of payment or the cancelled check. If you finance a major purchase, you will want to hold onto the contract as well.
Other Expenses will be most everything else you purchase. Entertainment should be business related and you should document on the receipt details which may include the client or customer that you entertained. Education, conferences, networking, travel and office supplies receipts should be kept along with the banking records showing proof of payment.
If you are questioning whether a receipt should be saved, use the “better safe than sorry” approach.
You do not need to keep the receipts in a box, you can always save them electronically. There are several options out there to help with the scanning and organizing of the documents.