Scanning & Claiming Meal Receipts is an important step in the business of bookkeeping. The goal is to get 100% of the source documents to support an audit; and meals & entertainment is one area Auditors love to focus, especially once they discover you have insufficient documentation.
So what is required for proof of purchase? Well the detailed restaurant receipt for starters, along with the credit card receipt showing the tip and total amount paid. If you paid cash note any tip on the front of the receipt.
The receipt should have the following information:
- Restaurant Name, Address & HST Registration number;
- Date of the transaction;
- Make a note of the person you met and reason for your meeting;
- Show the tip and total amount paid.
By noting the details on the front of the receipt, it will be easy reference once scanned into your bookkeeping or Hubdoc accounts. This also makes it easy for an auditor or business owner to quickly review later, without having to reference a diary or try to interview you later as to the details of the meeting.
By making the notes as the transaction occurs you can feel confident later should you have a review of your source documents by a year-end accountant or auditor.
It should be noted that there are special rules under certain circumstances, for example while attending a conference, convention or seminar and when the cost of a meal is included in a transportation fee. It is best to review the Canada Revenue Agency’s IT-518R for specifics on unusual circumstances.