You know that your company, or you, incurred and paid the expense, but you have no way to prove it because the canceled check was lost. Or, you paid cash and the receipt is lost. What can you do?
The following solution is from the AIPB's "Better Bookkeeping in 15 Minutes--25 Best Bookkeeping Tips of 2008"
Tip #20: The IRS accepts as proof of an expense, a canceled check—or . . .
1. a bank statement showing the check has cleared and. . .
· check number
· the amount
· payee’s name
· date the amount was posted to the account by the financial institution.
2. a bank statement showing an EFT wire and . . .
· the amount transferred
· payee’s name
· date the transfer was posted to the account by the financial institution.
3. a bank statement showing a credit-card charge and . . .
· the amount charged
· payee’s name
· date charged (transaction date)
