Receipts are a part of business life. Whether you’re running a business, holding client meetings offsite or you travel for work, those little documents have probably seen the inside of your wallet or shoe box.
They’re integral to keeping track of your expenses and outgoings, of course. But paper receipts are also monuments to yesterday. They take up space, they’re environmentally unfriendly and they’re easy to lose. Worse, many small to medium businesses (SMBs) are still using them to input information manually, leading to wasted time and human error.
Like many advancements, the biggest obstacle is often fear: Will digitizing cost too much? Is it hard to do? Why change?
Every small business should be using a receipt app and accounting software, even if they’re outsourcing their accounting. Your accountant will love you for it, but there are several other real, tangible benefits for using receipt apps and accounting software. Here are five….
Digital receipts cut down on labor costs
You know that small businesses and sole traders spend more time than they’d like filling out paperwork. But even the most seasoned entrepreneur might be shocked to know how much time they’re wasting: business owners spend an average of 120 hours a year working on financial admin – three full working weeks, in other words. That’s according to Elite Business magazine.
Paper receipts don’t just create data entry work. They take up time and head space. That $3 coffee receipt has to be remembered up until the moment the data is entered (along with any other receipts you accumulate). Until then, your receipt has to live in your wallet, waiting for you to reach your computer, at which time you have to make room in your schedule to enter the data. It’s not an exaggeration to say that the labor costs have swelled the price of that coffee from $3 to $10.
Snapping and sending that receipt immediately frees head space. It outsources the task of remembering it. And a good cash receipt app will remove much (and possibly most) of that admin while also reducing instances of human error.
The human error factor is especially relevant when you consider that over half of SMBs go out of business in their first five years due to bad admin and finance management.
How it works…
Your typical small business or sole trader did not get into the business to file receipts. If you’re a florist or running a cafe, you can spend just a few minutes glancing over admin, instead of using up a whole morning or afternoon. You can use that time to get back to what you love about the business – dealing with customers and pursuing your passion projects.
Losing paper receipts is more common than you think
Receipts are often small, and thus sometimes neglected. Was that Starbucks airport receipt so important? But they add up, especially if those receipts are for travel expenses like accommodation and fuel costs.
In the UK, a government poll found that 65% of decision makers in finance and accounting admitted to losing receipts. You might have even lost a receipt without knowing it.
Taking a picture, especially if it uploads to the cloud, instantly removes and outsources this problem.
How it works…
Many small businesses,Continue reading