📁 How to Archive Records & Receipts Digitally and Stay Audit-Ready
Whether you’re a YouTuber, Shopify seller, dentist, or freelancer, you know tax time can be stressful — especially if you’re scrambling to find receipts from a year ago. But staying audit-ready isn’t hard if you use digital tools the right way.
What the IRS Accepts (Yes, Digital Is Fine!)
The IRS accepts electronic copies of:
- Receipts (business or personal deductions)
- Invoices
- Bank and credit card statements
- Canceled checks
- Tax documents (W-2s, 1099s, etc.)
- Signed contracts or agreements
- Mileage and expense logs
Your digital records must be:
- Accurate
- Legible
- Complete
- Accessible if requested
Scans, PDFs, clear smartphone photos, and stored digital files are all acceptable — as long as they are properly organized and backed up.
What Should You Keep and For How Long?
| Document Type | Recommended Retention |
| Tax returns (personal/business) | 7 years |
| Expense receipts & proof | 7 years |
| Charitable donation records | 7 years |
| Employment tax records | 4 years |
| Major asset purchases | Life of asset + 7 years |
| Legal, formation, or ownership docs | Permanently |
How to Digitize Your Records
Start simple:
- Use your smartphone to scan receipts (apps like Adobe Scan, Genius Scan, or Dropbox Scan work great).
- Save as PDF or image file (JPEG/PNG) — don’t rely only on paper receipts.
- Name files clearly (e.g., 2025_07_29_LaptopReceipt_Apple.pdf).
Create folders by year and category:
- 2025 > Expenses > Equipment
- 2025 > Income > 1099s
- 2025 > Travel > Mileage
Back it up:
- Save your records in at least two places: a cloud service (Google Drive, Dropbox, OneDrive) and an external hard drive.
- Use file encryption or a password-protected folder for sensitive files.
Common Mistakes to Avoid
- ❌ Throwing away receipts after uploading but before confirming the file is saved correctly
- ❌ Storing documents only on your phone or desktop with no backup
- ❌ Sending everything to your email inbox with no organization
- ❌ Forgetting to document cash purchases, mileage logs, or digital subscriptions
Why It Matters
During an audit, the IRS (or state agency) can request proof of:
- Expenses you deducted
- Income you reported
- Business use of personal items (car, home office, phone)
- Donations or loan statements
If you don’t have proof, the deduction could be denied — and that could mean back taxes, penalties, and interest.
How Velin & Associates, Inc. Can Help
We work with professionals, creatives, and business owners to set up custom digital recordkeeping systems that match your business and lifestyle — whether you’re a:
- YouTuber or TikToker managing creator income
- Shopify or Amazon seller tracking product costs and returns
- Dentist or healthcare professional logging equipment and overhead
- Filmmaker, tradesperson, or local business owner organizing job-related deductions
We don’t just prepare tax returns — we help you stay protected year-round. That includes helping you:
- Understand exactly what records to save
- Set up a year-by-year archive with IRS audit readiness in mind
- Review your documentation before filing, so there are no surprises later
Ready to Get Organized — and Stay That Way?
If you want to feel confident that your records are complete, compliant, and ready for tax time (or any IRS letter), we’re here to help.
📍 Velin & Associates, Inc.
8159 Santa Monica Blvd STE 198/200
West Hollywood, CA 90046
📞 323-902-1000
📧 dmitriy@losangelescpa.org
🌐 www.losangelescpa.org
Our firm provides the information in this e-newsletter for general guidance only, and does not constitute the provision of legal advice, tax advice, accounting services, investment advice, or professional consulting of any kind. The information provided herein should not be used as a substitute for consultation with professional tax, accounting, legal, or other competent advisers. Before making any decision or taking any action, you should consult a professional adviser who has been provided with all pertinent facts relevant to your particular situation. Tax articles in this e-newsletter are not intended to be used, and cannot be used by any taxpayer, for the purpose of avoiding accuracy-related penalties that may be imposed on the taxpayer. The information is provided "as is," with no assurance or guarantee of completeness, accuracy, or timeliness of the information, and without warranty of any kind, express or implied, including but not limited to warranties of performance, merchantability, and fitness for a particular purpose.