Digitized Receipt Management Is The Secret To Successful Start-up And Entrepreneur Business: Here’s Why And How

Are you start-up entrepreneurs who are struggling to manage your business expenses? Or are you business owners who have head-scratching problems keeping track of your receipts? 

Having receipts unorganized may slow down your business. Therefore let Shoeboxed become your reliable partner in tracking your expenses. You just need to focus on your business, we will clear the receipts for you.

In this article, we would like to share with you the benefits of receipt management and how it helps start-up entrepreneurs and business owners to improve their business performance.

Table of contents

  1. What is receipt management?
  2. Digitize your receipt management task
  3. Shoeboxed – who we are and what we offer
  4. Conclusion

A receipt is a piece of paper that contains the most important information of the transaction of 2 parties.

1. What is receipt management?

It means what it sounds. Yes, you are not reading it wrong! Receipt management just simply means managing the receipts through the practice of organizing, filling, and profiting by keeping track of the receipts accurately.

2. Digitize your receipt management task

For an old-style receipt management system, you need a pen, a set of paper, and a calculator to record and totalize your expenses. Nowadays, with the development of technology, you can store those receipts in your computer just by a scan, and even get insight into your expenses just by a few clicks.

It is easier when tracking your business performance

Normally, small business owners deal with two types of receipts on a daily basis. One is the record of what they have spent (for eg. payment of utilities such as electricity, water, etc.) and the other is the record of purchases their customers have made. After scanning your receipts and having the raw data, you can customize your monthly expense by sorting chronically, by the vendor, or even by type of product and so on. So by digitalizing the receipts, you can monitor the performance and profit for each month, what needs focusing, and what needs to be omitted.

It is a lot simpler when applying for a tax deduction process

Having your expenses digitized can also reduce your time preparing for the tax deduction process. For example, if one type of expense is considered tax reducible, other relevant expenses in the same category might also be tax-deductible. Even though there is not 100% that your tax payment can successfully get deducted, you still get a higher chance just by organizing your receipts.

It is faster when preparing for the auditing process

Receipts are evidence of your business performance when it comes to the auditing process. As mentioned above, when scanning your expense receipts, you also store a soft copy of them on your computer. Therefore, to prepare for the auditing process, you can easily retrieve the pictures of those receipts with just 1 click.

3. Shoeboxed – who we are and what we offer

We are Shoeboxed. We offer a service that helps not only individuals but also organizations with their receipt management tasks. 

We help you turn your receipts into digital data so you can keep track of them easily. Our team members will double-check if the information is correct or not so please rest assured that the digital data are verified. With the data in your hand, you can freely customize your data based on your preferences. You can also create the expense reports on your own for tax preparation or reimbursement as well as the auditing process. 

Also, with some more techniques, you can have a broader and deeper view of your business performance as well. 

How our service works

1. You can send us your receipts for free with our postage-paid Magic Envelop and we will scan them for you. You can also scan the receipts by yourself with our mobile applications (compatible with both Android and iOS).

2. We extract all the key data of your receipt so you can easily keep track of them. To view the full scanned image of your receipt, you just need to click into the expense.

3. For customizing the report, you can use our categorizations, or create your own which fit your needs. You can export and download them anytime, even the scanned ones.

We offer different plans for different purposes so please visit our website or contact us for more information about which plan is best for you. And don’t worry, we also offer a 1-month trial so you can test first if we are what you are looking for. 

4. Conclusion

With those benefits mentioned above, the importance and the necessity of receipt management are undeniable. Income statement, Business performance tracking, Tax deduction procedure, Auditing process become easier and faster just by a few simple steps. Last but not least, no one wants to collaborate with an unorganized partner. Therefore, having your accounting desk clear will help not only boost up your business performance but also strengthen your image in the market.

The Balance of Business and Personal Finances

Like oil and water, your business and personal finances don’t mix. Responsible financial management is crucial to surviving a volatile economy for any company. To keep stable finances, business owners need to be well versed in financial literacy, in their personal and professional lives.

The startup and growth phase

It’s easy to overstretch personal finances to support the startup costs of a business. Trying to compensate for the lack of revenues leads to mismanaging personal finances. Not saving, and borrowing against personal credit, are partly why 30 percent of small businesses fail in their first year.

When your business begins to generate cash flow, the business then supports you. It’s crucial to budget personal and business expenses separately or both will suffer during challenges of downturns in fluctuating markets. The ability to protect your personal assets from business debts and losses should be of the utmost importance for any business owner.

Establish a business credit profile

Putting your business on the map is the first step to separating your finances. As a business owner, you need to apply for an employer identification number (EIN) via the IRS website. The EIN is for tax and credit purposes. Obtaining one allows your business to build a credit profile and maintain a record of business transactions. Until you file your business as a separate legal entity, you are personally liable for all financial business activities.

The advantage to having an established business credit profile is increased borrowing power. Reports show 29 percent of small businesses fail because they run out of money. A strong business credit profile lets you qualify for small business loans with low interest rates, creating the ability to have access to cash without tying up your own working capital.

Finding the balance

So, where do you go from here? Once you’ve legally separated your personal finances from your business expenses, it’s time to open separate accounts. Out of the 65 percent of business owners who use credit cards for business expenses, only 50 percent of the cards are under the small business’ name. Having a business credit card, and using it responsibly, sends positive credit activity to business credit bureaus, and legitimizes your business.

Opening a business credit card is an easy way to draw a clear line between business and personal transactions. Keeping business receipts can be a hassle. Whether you’re buying inventory, advertising, or going to a networking convention for your company, using a small business credit card is a simple way to document these expenses, without much effort.

Business bank accounts

Once your business is ready to start accepting or spending money a business bank account needs to be opened. A checking, savings, and merchant services account are typical business accounts to have. The merchant services account allows you to accept credit and debit card transactions from customers.

Business accounts afford business owners perks standard personal accounts don’t offer. For example:

  • Protection. Business bank accounts offer purchase protection for your customers and ensures that their personal information is secure, while personal accounts offer limited liability protection.
  • Professionalism. According to the IRS, only businesses can deduct business expenses. If the expenses incurred for your business are deducted from your personal bank account, the IRS will have the impression your business is a hobby. If you were to be audited, you will have a difficult time proving your business’ validity.
  • Relationships. As your business grows, having a good relationship with your bank will become increasingly important. The sooner you open the account, the sooner you begin establishing a relationship with the bank, which makes obtaining finances for future business expenses easier.

Managing personal finances

As a business owner, it is easy to lose sight of your personal finances in the day-to-day responsibilities of running a business. However, like a business, your bottom line for your personal finances should be attended to and defined. Are you putting money towards your retirement? Are you adding to your savings with each paycheck? Have you cut out expenses that aren’t adding value to your life? Do you have adequate health or life insurance?

While it seems like a basic concept, many people lose sight of maintaining a positive cash flow, and preparing for the future. Always spend less than you make. Remember some months will be better than others. When revenue doubles or triples create a flexibility account after you:

  1. Pay taxes
  2. Put away for retirement
  3. Set aside for an emergency fund
  4. Pay yourself a salary

Tools to help

It can seem daunting to balance two budgets while managing your business and personal life. A great way to begin getting your finances in order is to make a spreadsheet. Monitor and track your cashflow like you would for your business. This will make it easier to see where you need to cut back, what bills need to be paid, and whether or not you’re spending your money wisely.

If you regularly use personal items, such as your car or phone for business needs, keep track of how much the use costs you. For example, logging gas used on business trips and monitoring your business calls on your personal phone will allow you to claim those activities at the end of the year. Too often, business owners assume responsibility for costs that can easily be written off.

There are many tools available for personal financial management to make things easier if spreadsheets seem too time consuming

  • Mint. A popular free tool helps track expenses, plan your budget, and sends alerts when you’re close to reaching your limit for spending.
  • Shoeboxed. A fast way to digitize and archive receipts in a single, secure location. Turn receipts into verified data, categorized, organized, and searchable anytime, anywhere.
  • SavedPlus. This app is good for people who have trouble saving. It lets you set aside a percentage of each purchase you make. The percentage is then sent into your savings account with a weekly deposit.
  • Level Money. This is a great app that helps you gauge how much money you have to spend each month based on your income level.

Final thoughts

Of course, every business is unique and as a business owner, you should always tailor your focus and budget to what’s right in your situation. Planning ahead and remaining frugal will serve you and your business well in the long run. This provides a clear roadmap to achieving your business and personal goals.

 

 

 

 

4 Work-From-Home Pieces that Do Double Duty

What you wear when you work from home is one thing, but if you meet with clients throughout the week or need to stop by the office, you may want to rethink some of your wardrobe choices. To make sure you are dressed appropriately for whatever the day throws your way (but still comfortable enough to be productive at home), include versatile pieces in your wardrobe.

From a soft blazer to throw over a knit dress to the perfect blouse to pair with your jeans, here are some comfortable staples that can easily turn into meeting-appropriate professional pieces when styled correctly.

  • Blazer

Blazers are extremely versatile and look just as cute when worn with a pair of joggers as they do over a formal dress.  A blazer can easily elevate your outfit from casual to professional, making it the perfect layering piece. If you don’t want to invest in the typical black fitted blazer, opt for an oversized boyfriend fit or even a loose, open duster in a fun color. When you’re lounging around at home in jeans and a t-shirt, throw on a blazer to instantly upgrade your look before making an appearance at the office. Even just draping a blazer over your shoulders can take your outfit up a notch.

  • Casual Dress

When in doubt, wear a dress. Casual dresses are great for everyday wear, especially when they’re made from a comfortable fabric like jersey or cotton. Choose a dress with a forgiving fit and a longer length so that it can easily transition into a professional setting. Pair it with sneakers or loafers when you are working hard at home. When it’s time to meet a client or head into the office, slip into cute flats and add pretty statement earrings.

 

  • Dark Jeans

Every woman should have a pair of dark jeans in her closet. Not just any pair, but a pair that sits higher on the waistline and has a bit of stretch tends to look more polished. Whether you are sprawled out on the couch with your computer in hand or running to and from meetings, jeans are classy and comfortable. To dress them up for the office, slip on a pair of heels and layer on a blazer or a cute sweater.

  • Tunic Dress

There are many ways to wear a long tunic, which makes it a versatile addition to your closet. Invest in a tunic that is long enough to be worn alone as a dress—one that you feel comfortable wearing both inside and outside of the office. To dress it up for the office, simply layer a long cardigan or a printed scarf over it. In the colder months, wear it with a pair of leggings for extra comfort, and if the office calls, add a pair of tall boots for a chic look. To mix things up, treat it as a blouse by tucking it into a midi-length skater skirt or a pair of jeans.

Working from the comfort of your own home has its benefits, but it shouldn’t be an excuse to lounge around in your pajamas all day. Every morning, you should put effort into getting dressed for the day so that you feel comfortable and confident regardless of your work schedule. With these four pieces alone, you can create several outfits that are perfect for rotating Monday through Friday. Fashion should be fun, so get creative with your weekly wardrobe—no matter if you find yourself on the couch or in the conference room!

 

Allie Lochiatto is a fashion blogger who provides great style tips for those that work from home. She writes for her own blog, Allie Wearsand for thredUP.com, an online and offline consignment store that carries a large section of women’s clothing, including dresses perfect for work.