4 Reasons You Should Always Keep Your Receipts

In the world of business, receipts are vital to tracking your financial transactions, whether you're a small business owner or a big corporation. They let you track the money going in and out of your company to ensure that every dollar is accounted for. But if you aren't taking care of your receipts, they can cause problems for your company down the line. 

In this article, you'll learn that your receipts are worth keeping. They are more than just pieces of paper because receipts hold the potential to safeguard your business and unlock various benefits that you may not have considered before. 

FIRST, WHAT IS RECEIPT?  

According to Investopedia, a receipt is a written acknowledgment that something of value has been transferred from one party to another.  A receipt is a document that proves you have paid for something. It shows how much you paid, who sold you the item and other important information about your purchase. Receipts are also called sales slips or proof of purchase documents. Sales receipts are often used as legal documents to prove what was purchased, how much it cost, when it was bought and by whom it was bought for.  

WHY SHOULD YOU KEEP YOUR RECEIPTS? 

If you’re not yet keeping receipts, you should start now. Whether it’s a small purchase or a large one, it’s always good to keep track of your spending.  

Receipts can be useful for record-keeping purposes. If you keep your receipts, you'll have a record of how much you've spent for future reference, as well as where and when you spent the money.  

As a result, this will help you track purchases and expenditures, which can aid in avoiding errors and discrepancies if you are ever questioned or audited.  

More Reason to Keep your Receipt 

1. Receipts are a great way to keep track of your spending. 

Receipts can also help you see how much money is being spent on certain items and how often, which can be useful when budgeting or saving for future purchases. For example, if you notice that you’re consistently spending too much money on a certain item and need to put it on a budget, receipts will give you an idea of where and how much money is being spent. 
  

2. Receipts offer a financial history of your spending habits and can help you plan for the future. 

By reviewing your receipts weekly or monthly, you can see what items were purchased and how much money was spent on each item. Comparing receipts from different categories allows you to see how much you are spending overall, as well as in specific areas.  
 

In addition, keeping receipts helps people with multiple accounts to compare their spending habits across categories, so they know whether they are overspending in one area while checking if they are under-budgeting in another.  

3. Receipts are important tools for tax season and accounting.

Receipts are used to track business income or expenses, and they can also be used to help you file your taxes. 

4. Receipts are the basis for accountants and other professionals who work with businesses and individuals regularly. 

Receipts are an essential part of accounting as they provide documented evidence of purchases made during a set period of time.  This allows accountants to determine how much money has been spent on various items throughout each month or quarter/year.  

Organize your receipts 

Organizing your receipts is a great way to save time and money. You'll never have to dig through piles of paper to find that one receipt you're looking for. You'll also be able to see exactly how much you've spent and on what, so you can plan better for future purchases.  

To start organizing your receipts, follow these steps:  

• Gather all your receipts and put them in one place  
• Sort your receipts by categories (rent, utilities, food, etc.)  
• Take a picture of each receipt using your phone or computer.  
• Upload the pictures to cloud accounting software like QuickBooks.  

Best App to keep your Receipts 

Now that we've established the importance of keeping receipts organized, let's introduce you to the best app to help you in this process - QuickBooks. QuickBooks is a user-friendly, simple accounting software that tracks your business income and expenses that can also help streamline your receipt management experience. 

 Some of its key features include: 

• Receipt Scanning: QuickBooks allows you to effortlessly scan paper receipts using your phone's camera. The app then automatically extracts relevant information such as date, merchant, and amount, eliminating the need for manual data entry. 

• Smart Categorization: Expensify uses intelligent algorithms to categorize your expenses automatically. You can create custom categories or use predefined ones, making it easier to track and analyze your spending patterns. 

• Expense Reports: With QuickBooks, you can generate detailed expense reports with just a few clicks. These reports can be customized and exported in various formats to suit your needs. Note: Make sure to check your subscription plan to use this feature. 

Read Next: Cloud Accounting Software Tips for Startups   

THE BOTTOM LINE 

 Keeping receipts isn't just good for tax season. It's something that everyone should do in order to keep track of their spending habits —you can scan them and save them in a folder on your computer. That way, you can find any receipt at any time, and it's easy to update your records if you need to.  

Are you tired of struggling to keep track of your financial records and potentially missing out on valuable information? Look no further than D&V Philippines! Our team of highly skilled finance and accounting professionals have years of experience under their belts and are ready to help you fulfill your business obligations. 
 
Don't let the stress of receipts weigh you down. With D&V Philippines by your side, you can rest easy knowing that your financial records are in good hands. Contact us today to learn more about our top-notch services and take the first step toward financial success! 

You can also read our white paper, Download our Outsourcing: How to Make it Work guide today to learn how we can be your reliable outsourcing partner and how we can help you organize and keep your receipts. 

 This post was first published 12 December 2022 and edited on 24 November 2023.