When organising your business receipts, what type of person are you?
Are you naturally organised, or do you have an inbox full of receipts awaiting attention, plus a shoe box under your desk crammed with paper receipts?
It pays to be organised when looking after your business receipts. Here are our top tips to help you keep on top of them.
One business receipt storage point
Instead of gathering e-receipts in your inbox and paper ones in the bottom of your bag/pile on your desk/crammed in your wallet or purse (delete as necessary), maintaining one organised storage point will ensure none go walkabout.
Use a plastic wallet for the paper ones and a separate email for the electronic ones.
Do you need original business receipts?
As you know, you must keep your financial records for at least six years. But they don’t have to be paper. Although there are some exceptions (check with your accountant), it’s possible to scan your receipts and store them digitally rather than having to find storage space for all that paper for six years.
Set up a filing system for your business receipts
Keep an eye on your expenses by creating a filing system to quickly find specific items when asked for them.
Plus, when claiming allowable business expenses, it helps you and your bookkeeper if you categorise them—for example, identifying if they are for travel, marketing, Subsistence, or professional service expenses.
Don’t leave it to the last minute
No one likes paperwork, especially when it relates to housekeeping like this. However, if you start your year off the right way and maintain it by dealing with receipts as they come in, it will be easier to cope with than leaving it all until the last minute.
When it comes to running a business, it’s not all fun and games. A lot of mundane stuff must be done in the background. The secret to keeping on top of it is to have workable systems. But, thanks to a couple of nifty bits of software, you can effortlessly keep on top of your receipts. Both DEXT and Hubdoc are compatible with Xero. With them, you can quickly capture and digitise your receipts. Not only will this make your life easier, but it will also smooth the way for your relationship with your bookkeeper.