Denver, Colorado

5 Reasons To Invest In Automated Receipts

Are you spending endless hours on bookkeeping tasks? Struggling with fragile OCR technology or relying on human transcription can lead to headaches and errors. A Greenback survey estimates that users waste about five minutes to scan, search for or upload one receipt. Imagine a world where your accounting is streamlined, efficient and automated. This is what automated receipts will give you. If you invest in these receipts, you’ll have more time to spend on vital tasks like growing your business and spending quality moments with loved ones. And there’s more. Automated receipts get smarter with every use, learning your preferences and simplifying your financial processes. Here are some questions that will help you determine if investing in automated receipts is a good idea. 

Does Your Bookkeeper Know What You Bought Last Month? 

Probably not. If they’re using traditional receipt management, maybe they’ve not reconciled or categorized receipts for items you bought from eBay, Amazon and other e-commerce sites. Bank statements and credit card reports may offer some information on what is bought, but they may be limited. 

Automated receipts eliminate the need to track receipts and enter data manually. They’re designed to offer a comprehensive view, with product images, shipping information, live links and line items. They can also effortlessly capture all relevant information, categorize expenses and update records quickly. 

Automated receipts also keep data in one place. It doesn’t matter whether you’re on a business trip or vacation, you can search for any receipt, and it will show you how you’ve spent your resources. Additionally, it can match your transactions with original receipts and prevent duplicates. Through them, you can interpret large amounts of data and assess the areas you need to make adjustments easily. 

Are You Prepared For Auditing?

Facing an audit can be anxiety-inducing for businesses and individuals alike. One wrong move could expose you to financial scrutiny. Fortunately, automated receipt systems have your back. Investing in these receipts will help you keep your records organized and easily accessible. You’ll not worry about frantic searches for missing receipts during an audit because they’ll be securely stored in the cloud, where you can access them anytime. You’ll also have confidence in addressing questions about your financial records with ease. 

Moreover, automated receipts can boost your tax compliance. It’s advisable to store receipts for transactions for as long as you can. Unfortunately, many vendors only keep these documents for two years from the purchase date. The IRS publication 583 makes it clear that a tax deduction doesn’t depend only on the document showing the amount paid. You need other documents, such as invoices and receipts, to prove you made a payment. Automated receipts can make it easier to prove this, increasing your chances of compliance. Speaking with a tax attorney or an accountant can help you learn more about tax record keeping. 

Do You Have A Team Helping You With Taxes And Books? 

Collaborating with a team on manual receipt management can be a logistical nightmare. Miscommunication lost receipts, and delayed updates are some challenges you might encounter.

With automated receipts, your team can seamlessly collaborate, even if they’re spread across different locations. Everybody will have access to the same digital receipts repository, eliminating confusion. You’ll also be able to connect with your accountant or team more efficiently or securely. They’ll be no more worries about duplicate transactions or missing receipts because you won’t enter data manually. 

Furthermore, hiring a bookkeeper to correct data entry errors or track lost receipts won’t be necessary. Automated receipts will streamline your workflow, create accurate results and sync with your accounting system with little effort. It will also help your team to instantly upload and share receipts, track expenses, coordinate financial decisions and allocate budgets. 

Are Your Receipts Backed Up And Safe? 

Data is among the most essential assets that your company owns. However, it’s estimated that companies lose about 12 billion dollars in the U.S. each year due to data loss. You can lose data as a result of a hard-drive malfunction, ransomware attack or a drink spill. If you’re using traditional receipt storage, receipts can fade, be misplaced, or be destroyed in unforeseen disasters. 

Protecting your financial data is paramount, and that’s where automated receipt systems shine. These receipts are stored in the cloud and are future-proof, ensuring your data is secure. Investing in this system will minimize your worry about physical damage or data loss. Even if your office catches fire, your financial data will be untouched, ready to help you rebuild. You’ll easily access and use them to file an insurance claim, prove property loss, win a settlement and make important coverage decisions. 

Are There Blind Spots In Your Bookkeeping? 

In the world of manual receipt handling, blind spots are all too common. Human errors, overlooked receipts, and misinterpretations can lead to inaccuracies and incomplete financial records. But worry not; automated receipts leave no room for oversight. They ensure that every single receipt is captured, recorded, and accounted for.

For example, assuming you have a recurring expense for your business. Due to oversight, you miss it in your manual bookkeeping. This might lead to miscalculations or tax discrepancies. If you’re unlucky, you may even be fined. 

With automated receipts, every transaction will be meticulously tracked, leaving no room for such blind spots. It’s easy for examiners to assess and observe internal controls if your company has a digital paper trail. Automated receipts can make this process easier since they reconcile statements with original receipts. This data will make it easier for an examiner to view the accuracy of your company’s internal controls and operations. It will also make it harder for your staff to make mistakes or hide expenses. The result? You won’t worry about being penalized for missing vital documents. 

Automate Your Receipts To Be Ready For The Future

Investing in automated receipts is a game-changer for your financial management. It will empower you with improved bookkeeping, enhance audit preparedness, foster efficient team collaboration, ensure data security, and eliminate blind spots in your records. 

Automated receipts will also save you time and effort and give you peace of mind that your data is safe, readily available and accurate. Work with a partner who’s experienced in accounting and understands your company’s needs. You can also learn about receipt automation from professionals. Take the leap into the world of automated receipts and watch your financial management soar to new heights. The benefits are clear, and the results are transformational. 

October 12, 2023