Whether you are managing finances for your small business or filing taxes, the thought of receipts from your purchases getting lost in a sea of records and miscellaneous papers can be daunting. After all, physical records can get damaged or destroyed. But there's a solution that can bring relief. It is digital receipt management. Converting your printed receipts and records into digital records not only solves the issues of physical damage and loss, but it also brings a profound sense of relief and ease to your economic management. This digital transformation makes managing your finances more comfortable. It allows you to focus on your business without the stress of lost receipts.
While document scanners exist, a receipt management application is not just a way to digitally store and organize your receipts. After all, it's powerful software that can increase your productivity and put you in the driver's seat of your economic management like never before. With these apps, you have full control over your financial records, making managing and retrieving your receipts easier. This article deals with essential receipt management applications. It also explores how they help companies become more efficient.
Receipt Management
Receipt management is an essential aspect of general accounting. "receipt management" means using receipt scanner applications to scan receipts. It also involves organizing receipts and keeping an accurate and complete record of your financials. Most receipt management apps work the same way. You download them onto your mobile phone and use them to scan receipts. These applications use OCR (Optical Character Recognition) technology. It digitally converts the receipt data. It involves the merchant's name, date, amount, etc. This means that the app can 'read' the receipt and extract the necessary information. It also makes managing and retrieving your receipts easier.
You can retrieve your receipts anytime. It can be done by searching with keywords. Also, it can be easily done by scanning paper receipts with OCR and making a digital version. These receipts can include a wide range of business expenses like office supplies, travel costs, client invoices, and meal receipts, among others.
Receipt & Receipt Management: Importance
A receipt couldn't be considered as a piece of paper. It's an official document proving a business transaction or purchase has occurred. Receipts are given for company transactions. They are also necessary for tax purposes as proof of expenses incurred. Understanding the importance of receipt management for tax purposes can help you stay informed and prepared for your financial responsibilities. Small and medium-sized companies typically deal with hundreds of expense receipts daily. Managing receipts for a company can be daunting, but the proper enterprise/firm enables you to create expense reports with less effort. This is where the urgency and necessity of a receipt tracking system becomes apparent.
It is where a receipt tracking system can be favourable in many ways. Not only will you be able to manage receipts with greater ease, but you will also be able to keep track of your spending records. This can help you avoid financial disorganization, potential tax penalties due to missing or inaccurate deductions, and difficulty tracking business expenses. In short, a receipt tracking system can save you time, money, and stress.
READ ALSO | Best Tax Filing Software for Small Businesses in 2024
How do Receipt Management Apps Gift Small Company Owners?
There are some gifts/advantages to receipt management apps for company owners. It involves:
1. Identifying tax deductions
You will find it easier to administer company costs, file taxes, etc. It will happen once your digital receipts are organized by category. Receipt monitoring apps are necessary for account experts. It allows them to find tax deductions quickly. Be sure not to file your tax returns twice!
2. Classifying receipts
Organizing receipts is effortless with an e-filing system. Receipt scanner apps will scan receipts. It creates e-versions. Thus, you can store it safely on the cloud. You can keep your receipts of cost/expense in a folder in order by date. After all, you can keep them in a folder by expense category.
3. Creating a tax audit
Tax audits can be stressful and time-consuming, but proper receipt administration can help make them quicker and smoother. Keeping track of your receipts will also help ensure your business is always audit-ready.
Receipt management apps for businesses
There are many receipt scanners and management apps available to choose from. However, your choice will depend on your company's needs. Here’s how the best receipt scanning and administration applications stack up.
1. WellyBox: Best web-centric receipt tracking platform
Platforms: Web, What’s App
Ideal users: Freelancers, small businesses, mid-size businesses
Essential gift: Connect with WhatsApp to quickly scan your receipts into your account
Cost: From $9 monthly
WellyBox is a receipt and expense web app. You can monitor and manage your invoices here. After all, you can make statement reports. You can link it to your e-mail, too. Thus, recently acquired receipts will be shown on the WellyBox dashboard. After all, you can use WhatsApp integration to scan a receipt. You can also upload it to your WellyBox account.
You can establish classification rules to understand your financial standing better. It can be done once your receipts are uploaded. Costs for WellyBox’s plans are as follows:
- Basic plan: $9 monthly
- Company plan: $49 monthly
- Accountant plan: $99 monthly
2. Next Prepare: Elite for businesses needing robust receipt monitoring ability
Platforms: Android, iOS, Web
Ideal customers: Company owners, bookkeepers, and accountants
Essential gift: Companies needing robust capabilities. Bookkeeping and accounting firms.
Cost: Business Plus plan starts at $22 monthly
Dext Prepare connects to the different systems you use for your business. It involves accounting software like Xero, Quickbooks, bill.com, ApprovalMax, Right Network, etc.
They give plans tailored for bookkeepers and accountants and are more geared to enterprise-sized businesses. Their free trial runs for 14 days, which allows customers/users/clients to try out premium features before making a final choice. For those already using various other Dext products, such as Dext Commerce and Dext Precision, Dext Prepare is an easy choice for receipt tracking and management.
3. Neat: Best receipt scanner app for bookkeeping
Platforms: iOS, Android
Ideal users: Bookkeepers
Essential gift: The mobile app lets you connect your bank accounts, credit cards, and loan payments for real-time tracking.
Cost: From $25/month
If you aim to keep your books in better order, Neat is a solid choice. The receipt reviewing applications scans and uploads receipts.
Neat also connects your bank accounts, business credit cards, etc. It will also enumerate your costs/charges on each receipt. It also matches receipts to your invoices and bank statements. Also, it creates expense reports. You can sort, upload, etc., as many non-economic records as possible. After all, Neat’s cost management data connects with accounting software (like QuickBooks) and tax tools (H&R Block's and TurboTax). With Neat, there's no necessity to export your expense reports manually, non-financial records, or itemized receipts if you're logging them on Neat.
4. Expensify: Best expense tracking app for travellers
Platforms: iOS, Android, web browsers
Ideal users: Travelers
Essential gift: Suitable for individuals who are interested in travelling. After all, it works seamlessly across devices.
Cost: From $5/monthly
Expensify is a receipt reviewing/scanning and cost reporting application. It allows you to track your costs and charges on the go. The mobile application is open for both Android and iOS. This is making expense reporting a breeze. The Expensify app can be used offline or online. You can use your mobile camera to take a photo of the receipt. After all, the app will estimate the charges automatically. Later, you can attach the receipt to an expense report. However, the receipt scanner is accurate. There may be times when it does not capture all the elements on your receipt. You must check your expenses carefully and verify all the charges entered into your account.
Winding Up Note
Revolutionize your paper receipts into e-files and cost records, which saves you from spending hours on paper for information. It also saves you from organizing paper receipts into a logical sequence. Cloud aids, mobile apps, and receipt scanning apps can automatically perform these tasks, enlarge the accuracy of your economy and help you keep track of your costs.
Fino Partners gives the full spectrum of consulting, calculation, and compliance. In Fino Partners, your entire process is managed by seasoned professionals. Experts with collective tax knowledge do it from start to finish. Get in touch to work with a transparent company with the expertise to take sales tax off your plate. If you’re curious for more information on these, Contact us today!
