More than 80% of companies that fail are dealing with cash flow issues. There are several issues that contribute to a lack of cash flow, but getting organized is one of the best steps you can take.
Receipt management will help you in managing business expenses and keeping your company organized and profitable. Consider these points so that you can start tracking receipts and managing your records.
Go Digital and Paperless Whenever Possible
Going paperless is one of the most practical and effective changes you can make in your company. Using digital forms of payment is one of the best ways to make this happen. You can use apps like Apple Pay, Venmo, and others.
When you process payments through an app-based platform, you’ll get immediate digital receipts that are archived in the cloud. You’ll be able to retrieve records whenever you need to and can get multiple copies for your records.
You can also put virtual debit cards to use that you can use online and in-person without ever having to retrieve a physical card. Check here for more information related to these cards:
https://bentoforbusiness.com/features/virtual-debit-cards/
Invest in a Receipt Management App
Start using a smartphone app that lets you turn physical receipts into digital copies. These apps create archives for as many receipts as you can snap a picture of.
From there, you can categorize your business expenses, get real-time accounting, and can export tax documents at the end of the year. You’ll have ongoing archive access and tools for organizing receipts for as long as you’re a subscriber.
Set Up Clear Categories
Find a process for organizing your receipts that works for your company. These categories should pertain specifically to your business and can even be color-coded.
Figure out which software platforms are ideal for your company. Many companies integrate their bookkeeping software with the one that they use to file their taxes. Categorizing clean records will also be helpful to your certified public accountant (CPA) once it’s time to pass along information.
Create Notes and Reports
Contextualize your records as frequently as possible. It’s easy to completely forget what purpose an expense served months or years after the money was spent. Having organized business expense recordkeeping systems will come in handy if you’re ever audited, seeking funding, or making a sale or acquisition.
Strike a balance between software and hard copies so that you have multiple backups. Create multiple file locations on physical hard drives and in multiple cloud accounts. Regularly backup your systems using encryption methods that protect your sensitive documents.
Always leave notes for context so that you can get caught up to date whenever it’s time to retrieve records.
Handle Your Receipt Management
Your receipt management practices will dictate a lot about the success of your business. When you take your recordkeeping seriously, you’ll be armed with information that can guide you for years to come.
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Veeramachineni Lalitha
I am Finance Content Writer. I write Personal Finance, banking, investment, and insurance related content for top clients including Kotak Mahindra Bank, Edelweiss, ICICI BANK and IDFC FIRST Bank. My experience details : Linkedin