Which type of expense requires supporting documentation if it involves cash withdrawal?

Supporting documentation is essential for one-time non-recurring expenses, particularly when they involve cash withdrawals. This is because non-recurring expenses can vary significantly in nature and amount, and they are not part of the regular, ongoing cash flow that is easily tracked through conventional payment records. Because of this variability and potential for scrutiny, having detailed documentation serves to clarify the purpose and legitimacy of the expense.

For instance, if someone withdraws cash to cover a one-time event or purchase, documenting the transaction ensures there's a clear record of where the funds went. This is particularly important for auditing, tax purposes, and ensuring financial transparency. If these types of expenses lack supporting documents, it may raise questions about their legitimacy, potentially leading to complications during financial reviews or assessments.

On the other hand, regular expenses like monthly utility bills, maintenance costs, or subscription fees generally have consistent amounts and are well-established within a budget, usually backed up by monthly statements or receipts. Thus, while they may also require record-keeping, the context of withdrawal cash specifically aligns more with one-time expenses needing more robust documentation.