Finta Answers: Which Receipts Should Startups Actually Keep for Tax Compliance?

At Starcycle, we often get the question: “Do I really need to keep receipts for every single transaction?”

We get it. When you’re sprinting and shipping, the last thing you want is to get bogged down in paperwork. Still, good financial hygiene isn’t busywork—it’s how you keep a clear picture of burn, runway, and where your dollars actually move. That clarity can surface hard-but-helpful truths, like when it might be time to wind down instead of pushing forward.

Who better to demystify the ins and outs of receipts and compliance than our trusted partners at Finta?

Finta simplifies startup finances—from bookkeeping and tax management to tracking critical financial metrics—all within one intuitive platform. They're the experts at navigating tax compliance without adding unnecessary headaches to your day-to-day.

In our ongoing partnership, Finta customers enjoy 10% off Starcycle’s structured winddown services, bringing together essential financial clarity and closure peace-of-mind.

Finta’s Guide to Receipts

IRS compliance

Back in the old days, when money was predominantly transacted through paper bills and checks, the IRS started a compliance requirement asking businesses to keep receipts of those purchases for anything over $75. It’s still like this today, even though most startups now operate entirely with digital transactions. In fact, only 0.0012% from millions of transactions from Finta’s database today involve cash or checks.

The IRS wants businesses to keep receipts in case of a tax audit. An audit is just a request for information, typically triggered if something in your tax filings looks off. Like reporting $10 million of revenue but paying no taxes.

In these cases, the IRS is practical. They just want backup records that show your expenses are legitimate. That’s where receipts come in. As long as you can pull up a digital copy when needed, you’re more than fine.

​Receipt reminders

Getting pinged by your credit card provider to upload receipts? Turn off the reminders. There’s no benefit, only distractions, since it’s all getting captured digitally. Unshipped features, cold sales pipelines, missing receipts. Guess what your investors care about?

At Finta, we changed the receipt requirement threshold in Ramp from $75 to $1,000. This isn’t even for the IRS. We just want better info for large purchases in case we need it internally later. Like when you’re trying to figure out what a $5,000 purchase was for years later.Receipt requirements have gotten so pointless that Brex built an AI feature to generate fake ones for you. If you use Brex, just turn it on.

Compliance is a growing requirement

Your biggest risk early on isn’t missing a $76 receipt in an IRS audit. It’s running out of energy, time, and money. Manually tracking receipts doesn’t solve that. It adds to it. Focus on building the product and talking to users instead.

As your company grows, so do requirements. Investors, auditors, and regulators will increasingly expect clean and consistent records. That’s when systems and compliance matter; when your company is public and beyond. But by then, you’ll have a dedicated in-house Controller to handle it.

For now, don’t stress over this distraction. Focus on making something people want.

So…do you need to keep every receipt?

Short answer: no. You don’t need to hoard every slip of paper.

The IRS threshold is $75, digital statements cover most day-to-day needs, and receipts matter most for larger or unusual purchases—especially as you scale. What does matter at every stage is clean, consistent bookkeeping: it sharpens your view of burn and ROI, makes investor conversations easier, and, if you do decide to close, it turns a messy shutdown into a straightforward checklist.

Ready to make tax time way less painful?

If you want to stay focused on product while keeping your financial house in order, consider using Finta’s tools to automate bookkeeping, taxes, and audit-ready records—so you’re prepared whether you’re raising, cruising, or winding down.