Organizing receipts11/6/2023 businesses, UK businesses, and Australian businesses).Ģ) Leverage that list of relevant tax deductions as a starting point for your filing structure. (Here are some helpful resources for Canadian businesses, U.S. Storing receipts physically can be challenging, so it’s vital to be disciplined and create a strong filing structure from the start.ġ) Identify the relevant tax deduction categories for your small business and location. Regardless of the solution you choose, having all of your financial documents in one place will help you prepare for tax time! Physical storage (a.k.a., using a filing cabinet!) This is good but doesn’t automatically enter receipts into your accounting, make them easily searchable nor make tax deductions easy to calculate. This is because your bank transactions will be automatically downloaded and will get organized into the correct categories, primed for tax time.Īn alternate but effective option for many small businesses is to snap a photo of the receipt or scan it onto their computer and then upload directly to cloud storage services, such as Dropbox, Box or Google Drive. If you combine those services with Xero or QuickBooks Online, both powerful cloud accounting platforms, your tax deductions will also be easy to calculate at year end. It’s a small behavior change that has a huge impact! The only discipline required is remembering to snap a photo every time you make a transaction (or, setting aside a few minutes every week to do this). Fujitsu ScanSnap scanners can easily scan multiple documents with just the click of a button, and Hubdoc’s mobile app enables small business owners to take photos of receipts, then send them in to be automatically filed in Hubdoc. Of course, we’re not living in an entirely paper-free world just yet! Fortunately, there are solutions designed to help digitize paper receipts. Better yet, it makes your documents easily searchable, so they’re always available at your fingertips. Hubdoc also integrates with cloud storage platforms (including ShareFile, SmartVault, Google Drive, Box, and Dropbox) for automated additional backup and an even more streamlined document workflow. (Learn how to automatically fetch bank statements, bills, and receipts here.) Tools such as Hubdoc act as a digital filing cabinet and can automatically fetch, organize, and store your digital receipts. With so many online suppliers providing the option to email or download digital receipts, it’s easier than ever to automate the organization of your receipts. Moreover, moving away from physical storage can help you gain back valuable office space ( up to 25%, in some cases!). When you go paperless, there’s little risk of receipts getting lost, fading, or getting damaged. There are many benefits that come along with organizing receipts in the cloud. Organizing receipts in the cloudįortunately, technology is making it easier than ever to digitize and store your documents in the cloud. To make this guide easier to digest, we’ll be talking about those approaches separately and show you how small businesses organize receipts in each case. The type of foundation you create will depend heavily on whether you’re organizing receipts in the cloud or physically. Particularly, you want to follow an approach that simplifies tax deduction calculations and ensures you’re audit-proofing your business. The key to successfully and consistently organizing your receipts is to lay a strong foundation from the start.
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