USA Sole Proprietorship - Inventory Receipts?

[Diceman]

I've had a hobby buying and selling comics for several years and it's grown to the point where I'm having enough sales per year (Over $10,000 in gross income) to make it beneficial to me to start running it as a business in terms of taxes. I've been researching a lot on sole proprietorships and have begun the framework for record keeping but there is one aspect of the business that I have a question on.

The money I make is made buying comics and then reselling them at a profit. When I attend conventions to make the comic purchases which would constitute my inventory the sales are typically made in cash with no receipts. Would it be acceptable record keeping to simply keep an excel spreadsheet that lists each individual book I purchase, the cost of the book, and the date and location it was purchased? Or will I need to insist the seller issue me a physical receipt for each purchase.

Appreciate the help- Thank you!

 

[kirby]

If you cannot get a receipt for a cash payment, you should make an adequate explanation in your records at the time of payment.

The above is a quote from IRS publication 583. So an Excel spreadsheet with all the info you described that you wrote down at the time of payment would work when you cannot get a receipt.

 

[Diceman]

Thank you! That makes me feel a lot better going forward with this

 

[DTA93433]

Go to an office supply store (Staples, Walmart, etc.) and pick up a simple cash receipts/disbursements journal/book that is numbered. Use it to jot down the date, vendor, description and amount of each purchase. Use this as a purchases journal (ie, source document). Ask the vendor to sign it (if you want).