How to stay on top of receipts, the easy way.

We’ve all been there

We’ve all done it, putting off that job we really, really don’t like doing. One of those tasks which creeps up on us, and before we know it, a 5 minute job becomes a 5 hour job. But, we can make these mundane but necessary tasks fun, bear with me, as I promise I can make it fun, or at least a little easier for you. Think dancing around the kitchen whilst you're mopping the floor.

Recording of receipts is one of those tasks which are necessary and unavoidable, something we put off until the supermarket bag for life is busting at the seams with our little paper friends.

Why receipts actually matter

Why we need receipts essentially is to be able to:

• Have proof of expenses to provide to HMRC.

• Ensure that expenses aren’t missed.

• Know what the expense is for.

What happens if you don’t keep them

If we don’t have receipts to reconcile to our bank transactions, we won’t know what the expense is for, we won’t have any proof for HMRC during times of audit and we could potentially miss an expense, valid business expenses essentially reduce your income or corporation tax liability so it’s important to record them all in a timely manner.

The easiest way to go digital

Here’s where your friendly bookkeeper can help you out. First things first, what’s the easiest way to record your receipts digitally?

Going forward, Making Tax Digital (and there will more about this in the next blog) is now a necessary thing and this is where a bookkeeper can help, with advice on what finance system works for you and your business.

Ian’s top tips for stress-free receipts

So, here we go, my top tips are:

1. Scan as you go – just like you’re in the supermarket, as soon as you make a business purchase, record the receipt digitally.

2. Digital receipts – there are so many ways to do this, using FreeAgent or Xero software will let you take a scan and upload via their app. Alternatively, take a photo of the receipt or invoice, and then once a week email those to your bookkeeper. Keep everything in a separate folder so you know what to send across to us.

3. Damaged or missing receipts – as best you can, take a copy via the app or a photo, this can still be used as backup evidence for HMRC.

4. Email receipts – for online orders have a separate folder for your receipts and forward to your bookkeeper, do this once a week. Make a weekly task such as taking the bins out as a reminder to do this.

You don’t have to do this alone

We’ll always have the bank statement of course, but relying on that alone doesn’t work in the long run, so keeping on top of recording receipts will make your life a lot easier, and sending the receipts to your bookkeeper will make things easier still!

Things will never be perfect, and a bookkeeper can take out all of that admin for you, all it takes is a snap of a photo on your phone and then leave the rest to us. Trade secret, most of us bookkeepers secretly like reconciling ledgers, but don’t tell anyone. So give it a go, see how we can work together to make digital receipts a breeze – reach out today and let us handle the hard part.

How can we help?