Tax question for business owners with a company credit card

[teelainen]

Let's say you are a small business owner and you have a company credit card.

Every time you make a business purchase with your company credit card, do you need to save each individual receipt for tax record purposes?

Or can a single monthly credit card statement (by itself) serve as the "receipt" for tax record purposes?

What is the IRS rule?

[jebmke]

I'm not a business owner but I think the challenge with using just the statement might be demonstrating that the charges were proper business expenses and not personal or even expenses incurred by the business that might not be deductible. The detail on credit card statements varies. When I look at my personal card statement, it has nothing that tells me what each charge was actually for.

[HomeStretch]

Keeping all receipts is the gold standard for IRS audit documentation purposes.

[hachiko]

Generally the credit card statements are not sufficient. There can be times where the statement and/or a screenshot online has sufficient information. This is pretty rare, the most common charge that allows the cardholder to view this level of detail is air ticket charges, and even then, there may not be enough info.