Receipt Apps: Why We Love Them
Receipt apps are accessible and increasingly popular. Correct record keeping is the start of successful financial management for small businesses. Whether you’ve been in business for years or just starting, maintaining organised and secure financial records is essential. These records help you make informed decisions, prepare for taxes and demonstrate the financial health of your business. In today’s digital age, technology has significantly changed the way we handle financial data. One amazing tool that we LOVE is Dext. Since we have been using apps and recommending to our clients, we have seen an increase in deductions plus a noticeable reduction in manual errors.
Why Is Good Record Keeping Important?
- Tax Compliance Accurate and organised records make tax preparation much smoother, ensuring you claim all eligible deductions and credits, and reducing the risk of audits.
- Business Analysis Detailed records help you analyse your business’s financial performance, identify areas for improvement, and make informed decisions for growth.
- Financial Accountability Transparent records build trust with partners, investors and lenders so you can demonstrate your commitment to financial accountability.
Record Keeping Best Practices
- Use Accounting Software Most businesses (but not all) use cloud accounting. If you aren’t – consider investing in accounting software tailored to your business needs. Popular options include QuickBooks, Xero, and MYOB, which offer features for invoicing, expense tracking, and financial reporting.
- Organise Your Chart of Accounts Develop a clear and consistent chart of accounts to categorise income and expenses. This helps you track where your money comes from and where it goes.
- Regularly Reconcile Accounts Reconciliation ensures your financial records match your bank and credit card statements, reducing the risk of errors and fraud.
- Keep Business and Personal Finances Separate Maintain separate bank accounts and credit cards for your business to avoid mix ups, which can lead to confusion and complications.
- Record Transactions Promptly Make it a habit to record transactions as they occur. This prevents the accumulation of paperwork and helps you maintain accurate, timely records.
- Back Up Your Data Regularly back up your financial data to prevent data loss due to hardware failure or other unforeseen events.
Mobile Apps for Receipts: Benefits and Best Practices
Mobile apps for receipts have become indispensable tools for small business owners. Here’s why we love them:
- Paperless and Good for the Environment: Mobile receipt apps reduce the need for paper receipts, contributing to a greener environment and less ‘stuff’ in the office.
- Organisation and Accessibility: You can store and categorise receipts digitally, making them easily accessible for tax or audits.
- Enhanced Accuracy: Mobile apps can automatically capture key information from receipts, minimising manual data entry errors.
- Expense Tracking: Many receipt apps integrate with accounting software, simplifying expense tracking and reporting.
To make the most of receipt apps, follow these best practices:
- Choose the Right App: Research and select a receipt app that aligns with your business needs and integrates well with your accounting software.
- Capture All Receipts: Scan or photograph all business-related receipts, including those for meals, travel, and supplies. This ensures nothing is missed.
- Categorise Expenses: Use the app’s categorisation features to classify expenses accurately, making it easier to analyse spending.
- Regularly Review and Sync: Review your digital receipts to ensure they are correctly categorised and synced with your accounting software.
If you are unsure where to start, we have a webinar on Dext for small business owners which will give you everything you need to know. You can view this here: