Cloud technology has brought with it huge changes to the accounting and bookkeeping industries. Processes that once took hours can now be done in minute with the right combination of software (apps) and the right training. In addition these new software packages have produced some other, unforeseen benefits which are great for small business owners. A great example of this is Receipt Bank. A simple app which performs a simple function that has some benefits you may not have even considered.
5 key benefits of using Receipt Bank
Now this may seem like an usual statement to make when we’re talking about buying an additional software package. Thankfully the numbers speak for themselves! Right now you, or a member of your team, collate and input receipts into your bookkeeping software manually. Depending on the number of expenses you have this process could take hours or even days each month. How much are you paying your accounts payable person? $25 an hour? If they spend two full days each month inputting expense receipts that is $400 a month on data entry. Once the Receipt Bank system is being used to it’s full capacity you can enter hundreds of invoices per hour. Each item is entered by simply taking a photograph of the page with your smart phone or forwarding an email.
All invoices are processed as images or PDF files so each transaction in your bookkeeping file has a copy of the invoice attached. This means you can throw the physical copies in the bin and get rid of your filing cabinet. I don’t know about your office but in most accounting firms they dedicate whole rooms to document storage!
No more playing ‘find the receipt’
Ever needed to return an item or make a warranty claim? What is the first thing they ask for? That’s right, the receipt! With Receipt Bank you don’t need to search for that receipt anymore. The digital copy is saved in your software and it wont fade!
Improved communication with your accountant
At tax time Receipt Bank helps you avoid the pages of questions your accountant asks when reviewing your records and preparing your tax return. If your accountant is not asking questions then that’s an issue for a whole different article! Your accountant needs to decide if various amounts have been properly allocated in your records. The only way to do this is to check the original receipt. Receipt Bank saves you the time it would normally take to answer these questions. Because an image is attached to the transaction in your bookkeeping file they can view the original receipts as they work through the file without needed to request the documents.
Your business is Audit ready
If you are unfortunate enough to selected by the ATO for an audit it can be a time consuming and frustrating process. At a minimum they will request copies of a number of large receipts for expenses you have claimed during a given period. I have been involved in client audits where satisfying the ATO’s request involved working through boxes of records looking for specific receipts to scan and email. If you use Receipt Bank there is a copy of each receipt attached to the transaction in your bookkeeping records. What could have taken days previously can be done in minutes. Download the relevant receipts and send the email!
Should you take the plunge and try Receipt Bank?
At Panic Atax we are big fans of Receipt Bank. You have to give a thumbs up to any App smart enough to save you time, dramatically improve the quality of your bookkeeping records and make your life easier at time time, Especially when it only costs most business owners $20 a month. Even if you use a professional bookkeeper talk to them about using Receipt Bank. When set-up and used properly it can improve the flow of information between your business and the external bookkeeper.
If you are interested in using Receipt Bank in your business one of our team can answer any questions you have!