Every business owner knows the importance of keeping a paper trail of expenses. In our technologically advanced world, the documentation still needs to be there, but financial management is going paperless more and more each day. At Fricke & Associates, LLC we are well-versed in the intricacies of auditing. We want to highlight the importance of records and how Receipt Capture or another receipt management platform can help.
Why Keeping Receipts Matters
As a business owner, you need to know what money is going in and out of your business. Receipts help you stay informed about your expenses so you can ensure that your company stays profitable. Also, you will encourage employees to be responsible with their spending at the company’s expense. Accountability is good for you and your staff so the business functions properly and remains profitable. When you file your taxes, you will be able to write off some expenses and claim certain deductions, but only if you have kept thorough records. Keeping your receipts will help you receive the tax reductions you deserve. You will also be more likely to fill out your taxes appropriately and avoid causing a red flag that leads to an audit. Also, if your company’s taxes are called into question, receipts will help prove the expenses you had were legitimate.
How Long You Should Keep Receipts and Records
According to the IRS, a business should keep records and receipts for at least seven years. There may be some documents that should be kept for even longer. In addition to your receipts, you should save bank statements, accounting records, legal documents, insurance documents, permits, and licenses. Some of these business records may be able to be digitized to save storage space. Even going paperless on just your receipts will make a significant difference in your storage space and organization.
How Keeping Up With Technology Helps
A receipt management platform, such as Receipt Capture, will allow you to save your receipts to create a digital paper trail. You will be able to keep your receipts organized more easily. Also, you can set it up for your staff to send in their receipts digitally too. Instead of relying on your employees to keep up with a tiny slip of paper all day, they can capture it with their phone and send it to you even if they are away from the office. Some business owners are reticent to go paperless with their receipts and records, but the long-term benefits are undeniable. There will be more storage space in your office as the receipts are stored digitally. Your employees will not have to worry about keeping up with receipts all day. You will have your receipts stored safely where their ink will not fade nor will you have the risk of a cup of coffee spilled on them. Also, you will be able to search for your receipts through the digital platform, which is far simpler than digging through a box of paperwork.
Using Receipt Capture or another receipt management platform will allow you to link your accountant at Fricke & Associates, LLC in with your receipts. This will make tax season more straight forward. Also, we will be able to make more accurate suggestions for your financial planning and budgeting.
Enjoy the freedom and convenience of going paperless! If you need support with going digital or audit services, schedule a visit with Fricke & Associates, LLC.