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7 Business Benefits to Organizing Receipts

How often have you said no to receipts? Well, you might have lost count. As a customer, you might not find them useful, but the same is not the case with small business owners. They often look for a free receipt template to make them and bill customers. However, organizing them can take hours and lead to a mess if not managed properly.

Luckily, more small business owners are investing in online payment software to organize their receipts, get their taxes in order, and get protected from audits. So, if you have not started this process as yet, it is time you at least try out using the best free receipt maker app to get going.

 

IRS and The Importance of Receipts

IRS and The Importance of Receipts

Every year the Internal Revenue Service (IRS) conducts audits on small businesses and taxpayers. So, you might need to shell out extra taxes if you are not able to produce the documentation for the same.

Small business owners can get tons of tax deductions for their tax returns. These include meals, entertainment, travel, automobiles, and cell phones. However, they don’t always fully adhere to the IRS’s strict requirements.

It is impossible to produce every record, but you must have ample documentation to support deductions. Without receipts, your deductions will not be considered, and you could also end up paying heavy fines.

So, here are some basic tips you must remember when organizing receipts with your online invoice payment software to get the maximum benefits.

1. Store All Receipts

Store All Receipts

This cannot be stated enough. But, developing a process of filing receipts will save you a lot of money and time in the long run. The best thing is that you will avoid the whole frenzy when it comes to getting audited.

2. Jot Down The Business Purpose of The Receipt

Make it a point to jot down dining and entertainment expenses in your free receipt maker app. While it is easy to remember why you purchased that fax machine, it will be very difficult to remember why you went on dinner with the person and its purpose.

3. Scan Receipts and Keep Them for A Minimum of 6 Years

The ink on the paper receipt can fade anytime. The onus lies on you if the authorities cannot read a receipt. Luckily, the IRS lets you store receipts electronically. However, they still store their copies in multiple places- soft and hard to avoid issues in case of system failures or a calamity.

4 Keep Your Receipts on Your Smartphone

Nowadays, there are multiple apps to help you capture receipts. You can even put down notes on your digital receipts and store them. However, make sure you back up those files too.

5. Have Your Receipts on Mail

Many vendors offer you receipts by mail. If possible, request others also to send you receipts by mail and then store them in your online payment software.

6. Avoid Blind Trust on Bank statements

While bank statements are essential, they are no substitute for receipts. The IRS may check your statements and see that you spend $239 in a store. But, they have no idea what was the purchase for? It could be anything from movie tickets, technical gadgets, office supplies and other things you termed as expenses.

We suggest using a free receipt maker app for recordkeeping purposes. This will help you keep your statements in order and stay organized in case of audits.

7. Avoid Cash Payments

Last but not least, it is very important to say no to cash payments. Not only is it difficult to track, but it is impossible to make receipts for the same and reconcile them. We suggest better use cards- debit or credit- to get monthly statements. This way, you can blend them with your receipts.

In the coming decade, IRS audits will become more stringent, and the best way to deal with all this is to keep your books in order and keep receipts for all expenses.

Wrapping Up

These are just a few points you need to consider when organizing receipts using the free receipt maker app. If you plan to scale your business and get a better hold of taxes, we will suggest you invest in a full-fledged online payment software.

Read more interesting articles at Amir Articles

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