Document, document, document! You’ve heard it before, and for good reason. In the world of finance, this rule is just as important as in any other industry. In accounting, receipts are often called “source documentation.”
Simply put, a source document is the original record that supports a transaction recorded in your accounting system. While these documents were once always paper, today they can just as easily be electronic records—making it easier than ever to keep your books accurate and organized.
In the U.S., source documentation isn’t as strict as in other countries, like Canada, where every expense needs a receipt and a simple bank or credit card statement won’t cut it. Big high-five to all the U.S.-based bookkeepers breathing a sigh of relief!
But even if a receipt isn’t legally required, your bookkeeper still wants it. Providing receipts—especially in a timely manner—can make you a standout client. In fact, clients who do this consistently often land in the top 10 favorite clients, winning the hearts of bookkeepers everywhere!
But Christina, gathering all the receipts is impossible!” you might say. By the time you make a purchase, life happens—receipts end up on the floor of your truck, under your toolbelt, or crumpled beyond legibility. Four weeks later, you might not even remember what the purchase was for. I hear you loud and clear!
That’s exactly why I wanted to share this post. With the technology you already have—likely built into your accounting platform—you can drastically simplify this process and make tracking receipts fast and effortless.
That’s right, you may be sitting on a gold mine of efficiency that will actually generate more cash for you by saving time and we all KNOW
Time is Money!
My firm uses and loves Quickbooks Online (QBO) due to the many features and integrations including the recently upgraded “Snap Receipt” feature. To find this handy feature simply:
• download the QB app to your smartphone, with a camera
• open up the QB app
• click the “Snap Receipt” on the dashboard page
• The camera app will open up and you simply center the receipt and when the box turns green, click the button!
And Wala — the receipt is transported into a queue for you or your bookkeeping to review at a later time!
Brilliant!
QB Desktop has also this feature, which they call receipt management. Although I haven’t used it as of the time of writing this blog, I would highly recommend you check it out if you are a QB Desktop user. Here is a link to GET MORE INFO.
If you don’t use Quickbooks at all, never fear, the other platforms likely have a version of their own or you can look into a third-party app such as:
• Expensify
• Dext (previously known as Receipt Bank)
• HubDoc
Take some time to check out this time-saving tip, which will lead to more profitability as your find easy ways to lighten the workload with minimal to no expense increase; a direct effect of more profitability!
Have a favorite app that you use? Share it below and let us know what you love about it!
