A common thing I hear from entrepreneurs is the pain and confusion of tracking receipts! Why and how am I supposed to do this? Do YOU really track receipts??
I know it might not seem like it, but once you develop the habit, it will be easy! And the benefits of tracking receipts can actually motivate you and get you excited! Yes, can you actually get excited to track your transactions and receipts!
According to the IRS, you cannot deduct cash expenses over $75 if you don’t have a receipt. So as a conservative figure, if you missed out on only one deduction a month (for $100), that equals $1,200.00 in missed deductions
Therefore, receipts become very important documents to help save you money. Receipt tracking should take only 5 to 15 minutes a week, but can save you thousands of dollars.
A healthy business thrives from the cash flow available to help grow and support your business. But how will you know your actual spending if you’re not tracking ALL the expenses? And many times we can forget what we’ve spent, when we’re paying by cash and not keeping the receipts.
Applications are great for tracking receipts. Some applications can capture a copy of the receipt. Others can capture an image and extract the information from the receipt. And when it can do that, you don’t have to enter the receipt information later into your accounting software. Plus, it cuts down on the need to constantly carry receipts around.
My most recommended applications are: Expensify, Receipt Bank, Evernote.
Recommendation #1: Expensify (App Automation)
- Paid application and is very affordable at $5 per user a month.
- Captures pictures of receipts
- Tracks Mileage
- Extracts the information from the receipt to import into accounting software
- You can email reports to your accountant
Recommendation #2: Receipt Bank (App Automation)
- Paid Application starting at $25.00
- Captures Pictures
- Extracts information for system and assigns accounts only need review and 1 time account assignment
- You can also fax or email receipts in for the company or your accountant
Recommendation #3: Evernote (Hybrid)
- Free or Paid application
- Captures Pictures
- Save to enter receipts into accounting software or spreadsheet for import into accounting software
- Can email notebook of captured receipts to accountant
The important point is not how you track it but that you do it. Either way, find an option that works for you. If the system feels right for you than it will become a habit.
Receipt tracking is an easy money saver and can take no time at all to do! I would love to speak with you and help you implement your new system!
How do I get help with starting my new system?
Applications still need to be reviewed. Your accountant will be able to help you with your applications or has someone that can help you.