Old shoebox filing systems and faded paper receipts are a thing of the past. In fact, few other advancements in security and convenience technologies have revolutionised the data capture process more than digital record keeping.
Why Go Digital?
There are many benefits that come with digital receipts, which makes them better than traditional paper systems. They are fully-searachable, never going to be misplaced (maybe forgotten) and will take up no physical room. They are also fully recognised as a compliant method for HMRC tax purposes. You also eliminate the risk of a paper receipt growing old and slowly fading into illegible nonsense.
Setting Up Your Digital System
The first place to begin is with a cloud-based accounting software or by using an app that can help store receipts. Consistency is everything — so pick a system and commit to it.
Build a logical folder path to reflect your business spending: the folders can be office supplies, travel, meals, equipment and professional services. Many hours will be saved for this organisation during tax season. For help from Accountants Bristol, contact //chippendaleandclark.com/accountants-near-me/bristol/
Capturing Digital Receipts
Most of us now carry smartphones which take great photos, and in a size that is perfect for receipt scanning. Photograph receipts promptly upon buying stuff, while they are still readable and no ink has yet faded. Most apps can autodetect the date, amount and vendor from your photos. PDF receipts (for online purchases): Save those directly into the system of your choosing. Instantly forward emailed receipts to a dedicated business email address or save it anywhere digitally.
Good housekeeping in the digital sphere
Develop a habit: Create a procedure for receipt management. Let it be a day or the entire week, but stick to your schedule so that the pile of backlogs does not become too crowded.
Back up your stuff: Gone are the days of removable disks or CD-ROMs, automation is key and so storage in a cloud may be used with automatic backups.
Add Context: Make a note of why the purchase is business related, especially when it comes to meals or travel expenses. It also comes in handy when it is time for an audit or tax preparation.
Legal Requirements
Businesses are also required to maintain records for a minimum of 6 years, as per HMRC. Digital records have to be readable, they must include the same data as paper: date amount VAT and info about your supplier.
The Bottom Line
Digital receipt management streamlines what used to be an annoying admin task. Since you had it set up properly and formed habits, you never have to deal with the pain of searching for your missing receipts during the tax season again.
