Save the purchase receipt and a short explanation of why the business made the purchase. A statement line may show money leaving the account without explaining what was bought. Adding context while you remember it gives your bookkeeper a better starting point and leaves fewer questions at month-end.
The IRS recordkeeping overview identifies receipts, invoices and other supporting documents as part of business records. It describes expense support that identifies the payee, amount, payment evidence, date and what was purchased. Whether a particular cost is deductible is a separate question for your tax professional.
Attach a note, not a guessed category
Try this original record format: purchase date; vendor; document filename; business purpose; project or client, if relevant; paid by; and question for the bookkeeper. “Replacement labels for September inventory count” is more useful than “supplies?” because it explains the activity without pretending to settle its accounting treatment.
If a receipt contains both personal and business purchases, flag that clearly. Keep the source intact rather than editing it to make the total look simpler. Your note can point to the relevant line items and ask how they should be handled.
Close the information loop
Use three handoff states: ready, needs explanation and waiting for a document. When the missing information arrives, attach it to the same record instead of creating a second expense entry. Keep any reimbursement or refund correspondence with the purchase so the bookkeeper can see the sequence.
At the end of the month, review the unresolved items together. This routine is about preserving evidence and communication; it does not establish deductibility or replace your accountant’s record-retention instructions.
Related reading: How Long Should a Small Business Keep Financial Records?.
Trace a refund to the original purchase
Keep the original receipt and business-purpose note, then attach the refund evidence to the same trail. Do not replace the receipt with a smaller net amount or assume a card credit identifies its purchase. For a fictional office-supply return, identify the returned item, refund date and statement while leaving accounting treatment to the bookkeeper. A missing confirmation remains a question until the documents connect both transactions.
Very Good Accountant explains why supporting records matter when books and bank balances differ. Why Your Books and Bank Balance Differ: A Monthly Reconciliation Checklist.