Are Receipt Scanners Worth It? Things To Know Before You Use

If you are familiar with the accounting principles, you will know that you need valid proof to back every recorded entry. This proof comes in the form of an acknowledgment, or a receipt, every time you spend some money. More often than not, we misplace this vital piece of paper. Whether you run a small business or a full-fledged company, keeping these receipts intact is of utmost importance. Now that we live in a digital environment, keeping these papers in physical files has become outdated.

The solution to organising hundreds of receipts is by converting them into digital copies. This can be done with the help of receipt scanners. There are two ways to go about this. You can either opt for a receipt scanning device or software. You can download the software on your smartphone or desktop. As for the device, it can be an excellent tool if chosen correctly.

Keeping digitised receipts makes it easier to find them when needed. But apart from this, receipt scanning provides multiple other benefits. Let us understand some of these.

How does receipt scanning help your business? 

Keeping all receipts organised and filed can take up significant time. Not only this, the receipts are prone to damage. This can become a huge problem later when the final accounts and reports are being prepared. Thus, receipt scanning is the right move for your business. Some other things that receipt scanning helps with are:

Tracking business expenses

If you run a business – or are employed at one – you know how many expenses are incurred daily. This includes money spent on travelling, hosting conferences, and meetings at lunch, to name a few. Mostly, these expenses are paid for by the employees, to be reimbursed later. To get a reimbursement, submitting receipts is essential. They are valid proof of the amount spent. The employee must keep the receipt intact till it is submitted. Later, it is kept by the accounting department as proof of the transaction. Now imagine this with multiple employees submitting tons of receipts over months. 

Receipt scanning and keeping digital copies of receipts helps in keeping track of them. This is an organised way that provides efficiency in the long run.

Preparing for taxes

When you file your taxes, you need your receipts. This goes for all businesses, no matter on what scale they operate. Receipts are needed to confirm which expenses are eligible for a deduction. If you use a receipt scanner, you can organise digital copies as per your requirement. Many scanner apps allow you to create folders. These can be based on the taxation requirements and categories, so filing the tax return is less of a task.

Moreover, you must keep your documents safe for verification purposes. In case of an audit, these receipts are checked so that they tally with your accounts. In many cases, it is a legal requirement to keep your documents intact for seven years. This is a long time to manage a physical copy, which is highly prone to destruction. 

Creating reports

Keeping track of all your expenses is necessary. This is done by creating expense reports. This also allows you to know all the inflows and outflows of cash. Having digital receipts aids in creating reports as and when you need them. This can help you manage your finances better. Many softwares also come with automatic reporting techniques. 

When you have your receipts organised, you have a clearer picture of the movement of money. This helps you stay on budget as it becomes easier to curb unnecessary expenditure. When you free your resources, you get the opportunity to invest them in a better place. 

Managing costs

If you run your business, you may also be generating copies of receipts for your customers. This requires machinery and tools, printer ink, paper, and more stationery is needed for this process. This is not just time-consuming, but also adds to everyday expenses. Why would you want to waste your resources when keeping digital receipts is a much better option? By using a receipt scanning software or device, you can cut costs of generating physical copies. This amount can be redirected to better use, earning you more returns. It makes economic sense to switch to this option for overall ease. 

What should you look for in a receipt scanner?

Storage capacity

As we have mentioned before, hundreds of receipts may be generated in a day. Depending on the size and nature of your business activity, you can opt for the storage space you need. All you need to do is ask yourself how many receipts are being scanned every day, and you will have your answer. It is also important to make sure that the storage has proper security to keep the data from being stolen. 

Portability 

There may be times when you have to scan receipts on the go. This makes it important for the receipt scanner to be light and portable. A compact device that can fit into your backpack will make your task easier. If you have opted for receipt scanning software, make sure you run it on a device that is comfortable to carry around.

File support 

You must take note of the kinds of files that your receipt scanner can support. The images scanned can be saved as a JPEG or PNG file. But sometimes, you may have to send them across in PDF format. The receipt scanner must be compatible with multiple formats to avoid complications. It saves you from the hassle of changing the file type before you export it. Even if you receive digital receipts from other people, you can overlook the difference in the file format if the scanner supports it.

Speed

Receipt scanning can be a long process, especially if you have quite a few receipts to digitise. Check how fast your receipt scanner can do the job. Many scanners take mere seconds to take a snap of the document. Check the scanner speed before you make the purchase.

To sum it up

Receipt scanners can prove to be very beneficial. After going through all this information, we hope you are more aware of the functions of the receipt scanning technology. This small step can have a significant impact on your organisations’ efficiency.