Consider:
- the extent to which those records are organized and accessible outside of the accounting system
- how much is at stake if a deduction is challenged
- how easy it is to get the organization into an app like Entryless or Expensify or any one of a ton of others in which the spender snaps a photo of a receipt and sends it in for OCR and classification
- the volume of transactions that could be material that could potentially be challenged, individually or taken as a whole
- whether anyone is doing quality control on the data entry and needs quick access to the backup for classification
- the likelihood of the organization to convert to a different accounting system
- whether the organization has an annual independent audit
Our clients in the $1M-$10M range get us backup documentation for pretty much every transaction. And it comes in handy a LOT.