As a small business owner or entrepreneur, you will benefit from keeping track of your receipts, no matter how big or small they are. It can be difficult to keep all of your receipts all in one place. We have a few tips that will help to keep them organised.
1. Note Them Down
Making small notes of the business purpose of the receipt can help you to categorise your expenses. Be concise, specific and note down keywords that will jog your memory if you were to be audited a year later.
For recurring expenses such as office stationary, you may not need to note them down. However, it would be wise to highlight and make a separate note of the business expenses. This will be useful where receipts contain charges for both personal and business items.
2. Store them Electronically
Organising your receipts electronically can save you lots of storage space and time. It can save you the trouble of having to sort and file hundreds of tiny bits of paper, making it easier for you to access them when necessary.
You may choose to invest in a receipt scanner or a simpler option would be to use your phone to take pictures of the receipts. Make sure the date, address of the business and total purchase amount are clearly visible on the picture.
If you store your receipts on a computer, you can keep them in clearly labelled files which separate them by year and category.
Categorising your transactions can make it easier for you to refer back to them. You can research on the internet (or follow the links below) about the main tax deductible categories for your country and create your own categories based on that. Some common tax deductible purchases are:
- Office expenses
- Stock and Materials
- Business insurance
Keep your receipts in the categories they belong in and be sure to have clear labels on the files they are stored in.
4. Stay Consistent
It’s important to implement these organisation skills on a consistent basis. Try to use the same method of storing receipts, noting down the essential information and categorising them. This will help you to form good habits when it comes to organising your receipts and improve your productivity overall.
We hope this information has helped you. If you every require professional, one to one advice, you can contact us here.