If you are a business owner, whether, of a small-scale or large-scale business, expense management is an essential part of your life—keeping track of miscellaneous expenses can be a tedious process.
Even if you are an employee, there might be times when you have to take care of company expenses on your own dime and get it reimbursed later. This is why it is important to ensure you have your expenses recorded accurately and accessible. In addition to this, you need financial records for tax-filing purposes, accounts reporting, decision-making, and so on..
However, keeping physical copies of every receipt of every transaction that goes through is not a feasible option. This is where receipt scanning software and applications come into play.
In today’s world where everything is shifting to the digital realm, it only makes sense that receipts would too.
In this article, we will see what are the benefits of using receipt scanning software and how it will ease your business tasks.
1. Reduces clutter
This has to be the main benefit of using receipt scanning software to reduce paper waste. Paper clutter all over your desk is a huge trouble.
The best way to reduce this clutter is by using receipt scanning software. This way you can scan and digitize all your receipts and throw away the physical receipts. The process is as simple as clicking a picture of the receipt and documenting it digitally.
If you use the Dext receipt scanning software, it will also categorize and organize your receipts based on the mode of payment, date, receipt type, and so on.
2. Facilitates security
A business has confidential purchases—receipts of which you do not want receipts lying around. Also, there may be unfortunate events of natural disasters or theft that could leave you with no records for accurately filing taxes. These are scenarios which you should be aware of and take precautions against.
A receipt scanning software can make sure that all your transaction receipts are well-preserved and secure. You can even choose advanced receipt scanning software like Dext which provides automatic backup services which will give you a double layer of protection.
3. Ease of organization and access
It is common for a lot of business owners to throw their receipts into a random corner and call it a day. It is usually the small business owners that are guilty of this feat. Even if you have an organizing system in place, keeping track of all the receipts of every single transaction is a tedious task at best.
Making use of receipt scanning software will make this organizing process significantly easier. They have built-in OCR technology that captures receipt snapshots and extract data automatically—thereby allowing you to keep receipts in order as per date, price, vendors, mode of payment, and more.
4. Processing and tracking
Manually importing client data to your system is time-consuming and more prone to human error. Especially for small businesses with small teams, this is also not economically feasible. This is where you should work smarter and not harder. There is a myriad of receipt scanning applications that can scan documents and retrieve critical client information in a jiffy.
Most receipt scanning software can also analyze data efficiently and create expense reports. It becomes easier to create reports when they are categorized under appropriate categories.`
The perfect execution of expense reports is very important for the smooth running of a business. These reports allow your business to track where the money is going. You can assess areas where there is excessive spending and track your budget better.
5. Simpler tax filings with fewer mistakes
Inputting data manually into your system is bound to lead to human error. It is the nature of repetitive tasks—for which humans are hardly to blame. But even a change in small numbers could lead to potentially huge problems at some point. It would take you hours to find out where you went wrong and then rectify it.
Receipt scanning applications ensure that the data input is accurate for every transaction. This accuracy allows you to make tax filings simpler too.
Tax filing season is a nightmare for every business owner. Instead of spending weeks trying to find and round up all your receipts, a digital receipt-keeping system is all you need. When you send a complete set of digitally organized receipts through mail to your accountant, he/ she will thank you. Or better yet, they can access it directly from your software as authorized users—the cloud-based nature of the Dext receipt scanning software allows any number of authorized users to access records at any time, from anywhere.
If you are on the lookout for effective expense management software, Dext is your best bet.
Digitize your financial records and streamline expense management with Dext today!
