Today is the start of a new financial year. Like any new year, it’s time to make a few resolutions. The first? It’s time to find a better way of storing your accounting documents.
Do you have bits of paper and receipts all over your desk, on the dashboard in your car, in your briefcase or your toolbox? Or, like a lot of small businesses, do you have year’s worth of records in shoeboxes? It’s time to get organised and dump the shoebox.
If you’re at a restaurant with clients and you’ve just paid the bill, instead of shoving it into your wallet, you can photograph it straight into an app on your smartphone. The bill then gets uploaded, and the data such as the supplier’s name, the amount, the tax amount, and the date are extracted into an expense category. The app then feeds them straight into a cloud based accounting software program. Let’s take a look at one popular tool called Shoeboxed.
As the name infers, this app gets rid of the ‘shoebox’ system. It integrates with MYOB, Evernote, Salesforce, Batchbook, Constant Contact and dozens of other productivity programs.
Here’s how it works:
There are a few more handy apps you can try out including Receipt Bank and InvoiceSmash.
It’s important to check out the differences in the products as well as their plans. For example, you might like to consider these options:
Even though you will need to double check that the entries are correct before sending it to your accountant, these apps will really streamline your recordkeeping and make your filing a lot simpler.
If you still prefer the old tried and true method of the shoebox, why not get a filing system for your records and original receipts that has some order about it? The ATO requires you to keep receipts for five years in most cases and payroll information for seven years.
If you’re going to use a paper-based filing system, consider these options:
To help you make sure you’re fulfilling your tax requirements, the ATO have a nifty Record Keeping Evaluation Tool that lets you decide what records your business should keep. It also evaluates how well your business is keeping records already.
It all comes down to you. This year, are you ready to dump the shoebox yet?