How to Manage Receipts as a Small Business Owner
As a Director, we are entering into a time where the software and tools available to an SME are actually easier to use and better suited for purpose than those used by FTSE 100 Companies. Similar to the way we aim our packages, they are designed with the SME in mind and because the software Companies are much smaller than their Corporate rivals they are flexible and adaptable to change with your needs.
One massive no brainer when it comes to implementing software is that of Receipt Management and how to manage receipts as a small business owner. Imagine never having to touch a paper receipt again. Throw away that shoebox in your bottom drawer and stop paying your accountant to copy and paste details from each receipt into your accounting system, or if you are actually doing this yourself get your Sunday nights back!
Obviously you should be using Xero or QuickBooks Online as they the best accounting products out there, but even if you aren’t you can use the following workflow to automate getting receipts into your system for repayment, or backup to transactions that have gone through the bank statement.
- First you need to subscribe to Receipt Bank - we recently recommended them in our Essential Apps for Small Business Owners post (and no we don't get paid for recommending them but we just love them too much not to)!
- Then go through a proper setup process. The only reason you might experience frustration is not taking the time to set the system up properly and then document to all users how to best use the system.
*We would recommend a step by step approach which isn’t necessarily the same way Receipt Bank tell you to do it in their help files but it works best with our clients. Get in touch and we'll take you through it for free!*
Simply put, once you have followed this process the days of taking receipts will be over and you'll never touch one again!
So How Does It Work?
- You can take a picture of receipts received in paper form such as coffee receipts or bar tabs
- When you receive an email with a receipt attached it will automatically flow into Receipt Bank and then to Xero or QuickBooks Online without you having to do anything! Not even forward the email!
- If you can’t get receipts, for example Amazon, you will need to go and get these but once a week would be sufficient. Furthermore, for almost all cases there is a workaround so you can be given the receipts via email.
- Once the receipts have been sent to your accounting software, purchase invoices can be matched off against the bank payment by you and expense claims can be sorted through the expense claim module. If you only have director expenses, there is even a much easier and quicker way.
If you are already using Receipt Bank and want us to review the process by which you get receipts into your accounting software, then we would be happy to chat through and give some recommendations. Best practice is to create a process document and a new joiner document which takes staff through the best way to submit expenses, what the guidelines are and how and when they are paid.
Thank you for reading! Please leave any feedback and comments below.
Tags: Growth Best Practices