Quite possibly one of the worst things about business is the requirement for supporting documentation.
Whether electronic or paper, the IRS requires supporting documentation for all income, deductions, and credits related to your business.
On the flip side, supporting documentation allows us to maximize deductions, reduces risk, provides information for things like tax planning, acquiring loans, taking advantage of tax credits, or getting grants, and it is the fundamental piece needed to prepare accurate business financials.
Supporting documentation should be detailed in a way that transactions can be verified, including the names, dates, and descriptions.