The Importance of Tracking Receipts for Independent Notaries

For independent notaries, keeping track of business expenses is not just a good practice—it’s essential for staying compliant and avoiding costly tax issues. Tracking receipts ensures that you have proper documentation for every business-related transaction, which becomes crucial when it’s time to file taxes or in the event of an audit.

One of the main reasons to track receipts is to substantiate tax deductions. Business-related expenses like travel, office supplies, equipment, and marketing materials can typically be written off, but the IRS requires proof in the form of receipts to validate these claims. Without receipts, you risk having deductions disallowed, which could result in a higher tax liability or penalties. Properly documented expenses give you confidence that you’re maximizing your legitimate deductions and staying on the right side of tax law.

Another important reason is protecting yourself during an audit. If the IRS ever decides to scrutinize your tax filings, having a detailed record of your receipts will be your first line of defense. Receipts provide concrete evidence of your business expenses, proving that the deductions you claimed were legitimate. Audits can be stressful and time-consuming, but organized receipt tracking can save you from the headache of scrambling for missing documents.

Receipts and Mileage Tracking

While tracking receipts is crucial for most business expenses, mileage works a bit differently. The IRS allows notaries and other business owners to deduct travel using the standard mileage rate, which means you don’t need to keep fuel receipts or other vehicle-related documentation. Instead, you simply need to maintain a detailed mileage log showing the date, purpose of the trip, and the miles traveled. This log will serve as your proof if needed, so tracking receipts for gas or car maintenance isn’t necessary unless you choose to deduct actual vehicle expenses instead of using the standard mileage rate.

MyNotaryBusiness makes it easy to track all your expenses and mileage via the app, available across Android devices, iPhones, iPads, and computers. With seamless tracking across all your devices, you can stay organized and ensure your records are complete.