Purchases and Sales with Cash

[MNDesign]

As a resale business, I occasionally make purchases and sell items using cash with individuals who aren't businesses. I typically don't receive receipts for the purchases, and buyers typically don't want receipts. Are there some best practices for keeping track of these transactions? Am I putting myself at risk by not having receipts.

[Mark_5]

When faced with the process where physical receipts are an issue there are some various steps you can take with the cash transactions.

• Maintain a detailed log.
• Use digital tools and applications.
• Keep material communication and contracts.
• Photographs and screen shots.
• Do not default into a record less system, lack of overall company records is a burden on you.

Just because a customer does not want a receipt of a sales transactions does not mean you cannot create one for the sales event.  You should also be mindful of cash transactions that would be included in the requirements for collecting W-9s and issuing 1099s.