Receipts are undoubtedly one of the most important components of your entire financial management process. Whether you want to reclaim taxes or correct an error in your employee’s expense report, you will need receipts to accurately do these things. Receipts can also be used for the corporate card reconciliation process, as they can be used to match transaction statements and records. It can also help identify in case of any contradictions between internal statements and bank records. As a result, receipts are also crucial from the point of view of your company’s audit.
Being layered with so many tasks and legalities, receipt management has been challenging for almost all companies. Paper-based receipts are hard to store and manage, easy to lose, and vulnerable to human errors. This causes a problem both for the employer and employees. Traditionally, some of the most pressing challenges with receipt management have been:
- Storing physical receipts in a way that is easily retrievable when needed.
- Making sure the receipts don’t get damaged in any way.
- Ensuring searchability and easy access to important receipts.
If not tackled head-on, these challenges translate to a lot of problems for the financial health of an organisation. Luckily, you don’t have to face those problems in today’s world.
With the growth of technology, we have been presented with amazing tools that take care of mundane yet important tastes. One such tool is the receipt scanning software that helps businesses tackle the legacy challenges of receipt management.
Through this article, let’s look in-depth at some crucial expense problems and how receipt scanning software solves them! Additionally, you can check out Dext’s receipt scanning software to get a flavour of how these tools work and what capabilities they bring!
As businesses expand and scale up, managing receipts becomes a monumental task. From ensuring all the legal compliance to storing the receipts in an easily retrievable manner, a lot needs to be done for seamless receipt management. After all, these receipts are crucial for many things, and they need to be stored securely. As a result, receipt scanning software is slowly but surely being adopted by companies far and wide to handle their receipt management. Powered by automation, this software provides all the functionalities required for error-free receipt management. Here is how receipt scanning software helps you solve legacy receipt management problems:
If your team has been making multiple expenses related to your business, keeping track of all the receipts is extremely complicated. Further, since the task of reporting expenses itself is riddled with complications, employees tend to deliberately procrastinate expense reporting. And if not reported in real-time, there is a high chance of paper-based receipts getting lost, damaged, or misplaced. All of this will adversely affect your spending trends and insights, which are used to make future financial predictions.
With receipt scanning, on the other hand, employees can simply use their phone cameras as a scanner to click a picture of the receipt on the go. The software will then automatically extract all the important information from the invoice and store it in the cloud. The digital copies of all the receipts will, in real-time, be stored in a safe and secure place. Further, receipt scanners also enable expenses to be checked for any sort of violations in real-time, thereby eliminating the unnecessary back and forth that would have otherwise been required. By eliminating all the manual hassles, receipt scanners encourage timely receipt reporting. That way, your finance team stays updated with all the expenses in real-time, which paces up the reimbursement process and makes it easier for your employees too. All in all, with receipt scanning, you get real-time reporting of receipts and expenses!
If you have been dealing with physical receipts so far, you would have faced storage problems by now. If not, then you will face it when your business expands and grows further. After all, there is only so much paper your office can contain, and such heaps of papers are never easy to manage or sort through and are vulnerable to wear and tear and all types of damages.
With receipt scanning software, you get the luxury of unlimited cloud storage. That way, you can store all the bulk receipts that you want on the cloud via the receipt scanning software. Thousands of receipts can be managed at once as a single unit, which eliminates the chances of any careless errors in any of the receipts. Cloud storage also means that all the receipts are accessible from anywhere, at any time, just by using the internet and a compatible device. All of this makes reporting and accessing receipts extremely convenient for your entire team.
The traditional, paper-based method for managing and maintaining receipts is ineffective on many fronts, especially when creating reports or visualisations of the receipts so far. These reports are important to get a holistic picture of the business expenses, but this is a near-impossible task to do manually.
With receipt scanning software, since all of your receipts are stored on a central system, it is very easy to view or track any receipt that you want. Further, you can perform preliminary analysis based on the data provided by the software to make future predictions or plan upcoming expenses. With receipt scanning software, you can easily track, view, or investigate receipts based on the date of expense, category of expense, project, location, employee name, vendor/client name, and much more. That way, just one view of your receipts will give you all the important information you need to know!
In today’s digital age, automation is fueling business around the globe. It has helped even the most legacy industries tackle the severely pressing issues. Likewise, automation has also simplified the lives of small business owners and entrepreneurs around the globe by offering tools and software to simplify day-to-day tasks that are often mundane, vulnerable to errors, but also extremely critical to let the business stay afloat. Receipt scanning is one such application of automation in the business world that has been a savior and has helped tackle legacy receipt management problems!
If you are a small business owner manually managing your business receipts and finances, it’s recommended you switch quickly to a receipt scanning software of your choice!