According to the IRS, “your recordkeeping system should include a summary of your business transactions.” However, this does not mean that you need to keep every single physical receipt. Supporting business documents may include the following:
Invoices
Deposit Information (for cash and credit transactions)
Receipt Books
Forms 1099-MISC
Account statements
The IRS is required to accept digital forms of proof for your deductions, so keeping physical receipts is not mandatory. As long as you maintain your records with the types of supporting business documents approved by the IRS, you’ll be able to substantiate expenses, purchases, and other transactions, as necessary.