To get receipts from clients every month, ask for fewer of them and ask sooner. Work from the converted bank statement, list only the lines that need a receipt, send that list a few days after month end with one way to reply, and remind on a fixed schedule. Decide in advance when a missing receipt stops blocking the close.
Which statement lines need a receipt from the client?
A statement line needs a receipt when the bank's description cannot tell you what was bought or why, when the purchase could be personal, or when the client's tax preparer needs documentation for that kind of expense. Rent paid to the same landlord every month or a known software bill usually needs nothing beyond the statement.
The bank statement already proves that money left the account, on what date and to whom, roughly. The IRS page on what kind of records a business should keep says expense documents should identify the payee, the amount, proof of payment and the date, and that a combination of documents may be needed. The statement covers some of that. A receipt or invoice fills in what was bought.
Rules for particular expenses differ, and the preparer has the final word on what they want kept. For travel, gift and car expenses, IRS Publication 463 says documentary evidence is generally needed, with exceptions that include expenses other than lodging under $75. Do not turn that into a blanket rule for every line. Ask the preparer once what they want, write it down, and apply it.
Which lines to ask about
The table below is a starting policy. The thresholds are example values to agree with each client and their preparer.
| Statement line | Receipt needed? | Why |
|---|---|---|
| Recurring rent, utilities, software | No, after the first month | Same payee, same amount, contract on file |
| Card purchase at a big-box or online store | Yes | Could be stock, equipment or personal |
| Restaurant charge | Yes | Business purpose has to be noted |
| Hotel or airline charge | Yes | Travel usually needs documentary evidence |
| Purchase above an agreed amount (example: 500) | Yes | Might be equipment rather than an expense |
| Transfer to another account the client owns | No | Match it to the other statement instead |
| Cash withdrawal | Ask what it paid for | Cash spending leaves no trail on its own |
Lines that are clearly transfers, loan payments or payroll do not belong on the receipt list at all. Each one has its own source document, such as a loan schedule or a payroll report.
Receipt sending methods clients keep using
The method a client keeps using is the one that takes the fewest steps from the moment they have the receipt in hand. For most small business owners that means photographing a paper receipt on a phone or forwarding an emailed one, without logging in anywhere or renaming a file.
Common options, and where each one fails:
- Forward to one email address. Easy for online purchases, because the receipt arrives by email already. It fails when clients forward a whole thread and you have to dig for the attachment.
- Photo into a shared folder. Works for paper receipts if the folder is a home-screen shortcut on the phone. It fails when the folder is buried three levels deep.
- Receipt capture app. Good for clients with many receipts, since the app reads the amount and date. It is one more login, so it suits busy spenders more than occasional ones.
- A batch at the end of the month. Some clients keep an envelope. That works if the envelope actually arrives, and you agree on a date.
Pick one primary method per client and write it in their file. A client who can send receipts four different ways will use all four, and some receipts will sit in a channel you forgot to check.
A monthly receipt request built from the bank statement
A receipt request built from the bank statement lists each line you need, by date, payee and amount, so the client can find the receipt without guessing. A generic "please send your receipts" asks the client to work out which ones you mean, and most will not.
Build the request after the statements are converted and the obvious lines are coded. Whatever is left uncertain becomes the list. If you use AutoBankConvert, the transactions its rules were unsure about land in a review queue with a suggested category, and that queue is a natural starting point for the receipt list.
An example request
The client, merchants and amounts below are made up.
Subject: 5 receipts for March, by April 10
Hi Sam,
March is nearly finished for Example Landscaping LLC. These five charges need a receipt or a one-line note:
- Mar 4, HOMESTORE #2231, 642.18. Tools or materials?
- Mar 9, AMZN MKTP, 89.40. What was this?
- Mar 15, GRILL HOUSE, 118.25. Who was the meal with?
- Mar 21, ATM withdrawal, 300.00. What did the cash pay for?
- Mar 27, AIRLINE, 412.00. Which trip?
Reply with photos, or just answer in a line each. If you cannot find one, tell me and I will note it.
Thanks, Jordan
Notice the last line. Letting the client answer with a note instead of a receipt gets you most of what you need for coding. It also keeps a client who lost one receipt from ignoring the other four.
Number the items. When the client replies "3 was lunch with a supplier," you know exactly which line they mean.
How often should receipt reminders go out?
Receipt reminders work best on a short, fixed schedule: the request a few days after month end, one reminder about a week later, and a final note just before your close date. Three touches in about two weeks is enough. More than that teaches the client the earlier messages did not matter.
An example schedule, to adjust to your own close calendar:
| Day after month end | Message | Tone |
|---|---|---|
| Day 3 | The numbered request | Plain, specific |
| Day 10 | "Still need 2 of 5: items 1 and 4." | Short, lists only what is left |
| Day 14 | "Closing March on the 16th. Items 1 and 4 will be noted as missing." | Clear about the consequence |
Shrink the list in every reminder. Repeating all five items when the client sent three of them makes the client feel ignored and makes the job look bigger than it is.
Reply in the same thread, so the history stays in one place. Change the channel only for clients who you know answer texts faster than email, and only if your practice is set up to keep those messages with the client's records.
Ask about receipts in person too. A monthly or quarterly bookkeeping client review meeting is a good place to clear a backlog. Two minutes of "what was this charge?" across the table often beats three emails.
When to stop asking a client for a missing receipt
Stop asking for a missing receipt when the close date arrives and you have tried the agreed number of times. Code the line on your best information, mark it as missing documentation, and tell the client in writing. Holding the whole month open for one receipt costs the client more than the receipt is worth.
When the line is coded without a receipt:
- Use the client's note if there is one. "Lunch with a supplier" is enough to code a meal.
- Otherwise use a holding account that the client and preparer recognize, rather than guessing a category.
- Record why in the transaction memo: "No receipt after 3 requests, client note: tools."
- List it in the month-end summary, so the preparer sees it before the return.
There are cases where you should keep asking. A large purchase that might be equipment, a charge that looks personal, or a pattern of missing travel receipts all deserve a direct conversation instead of a quiet holding account.
A related situation is when you discover you coded a line wrongly because you guessed instead of asking. Say so plainly and fix it. Admitting a bookkeeping error to a client covers how to word that message.
How long receipts are kept is a separate question from how hard you chase them. The IRS recordkeeping topic ties retention to how long the records may matter for a return, which is a decision for the client and their preparer. Your job is to store what you receive and say what is missing.
Pricing the time spent chasing client receipts
Receipt follow-up is real work, and it should show up in the fee. Either build an expected amount of chasing into the monthly price, or name it as a separate charge when a client goes past an agreed number of open items. Clients who see that it costs them tend to send receipts faster.
Track the time for a few months before you decide. Note how many receipts you ask each client for and how many reminders it takes. Some clients send everything on day one. Others need three rounds every month. The difference belongs in the price, not in your evenings.
Two common ways to handle it:
- Include a set number of items. For example, up to ten open receipt questions a month are part of the fee, and more than that are billed at an hourly rate.
- Tier the fee by client behavior. A client who uses a receipt app and replies within a week sits in a lower tier than one who mails an envelope after the close.
If you are reworking prices anyway, a bookkeeping pricing calculator helps put numbers on the hours a messy client adds. Whatever you choose, write it in the engagement terms, so the conversation about extra fees refers back to something the client already agreed to.