As the 2021 tax season comes to an end, the stress is starting to creep up on business owners. Preparations can be taxing on business owners, often involving numerous steps. This includes double-checking accounting records, going over their tax claims to make sure the final numbers are correct, and sorting through piles of receipts that they’ve hung onto to submit to the IRS. If you’re looking to streamline this process by digitizing your receipts, you may be wondering—does the IRS accept your receipt scans? can receipt scans legally support your tax write-offs the same as original paper receipts?
We are here to put your mind at ease.
The short answer to your worries is yes. Receipt scans are 100% legitimate and approved by the IRS. In fact, the IRS has accepted scanned and digitized receipts as valid tax records for tax purposes since 1997! As such, scanned receipts must meet certain requirements in order to be eligible.
Read on to find out if your receipt scans have met all of the IRS’s requirements.
What are the requirements for a receipt scan to be accepted by the IRS?
According to the IRS, digital or scanned receipts must meet the following requirements:
Receipt scans are completely identical to their original versions.
Each receipt scan must exhibit a high degree of legibility and readability.
You must be able to provide hard copies of the scanned receipts in the event of an IRS audit.
Scanned documents must be stored in a secure place.
If you can ensure your scanned receipts are properly stored and backed up, and you can reproduce hard copies from them in a legible, readable format, you may dispose of the original receipts.
What is the most effective way to scan your receipts?
If you’re looking for an easy and convenient way to scan your receipts, Shoeboxed is what you need. Since 2007, Shoeboxed has helped many accountants, freelancers, and businesses scan, digitize and store their receipts safely in the cloud. Simply scan your receipts with your phone with just a click, and perfect digital versions of your paper receipts will appear in your Shoeboxed app!
On top of that, Shoeboxed automatically extracts, categorizes, and human-verifies important data from your receipts so that you can go over and check your records anytime with ease.
In case you have too many receipts and too little time to deal with them, send your piles of documents using the Shoeboxed Magic Envelope, and the Shoeboxed team will take care of the rest. Just send and watch them transform into organized digital data.
Quick, reliable, and trustworthy, Shoeboxed guarantees that the digital versions of your receipts are in precise format, audit-ready, and accepted by the IRS in the event of an audit. Try Shoeboxed right now and get 25% off all plans!
Every business wants to receive payments on time — who doesn’t?
While the exact timing of payments depends on your customers, there are some things that you can do to accelerate this process. One of them is to send your invoice via email.
Read on to find out the great benefits of email invoicing and get practical information on how to send an invoice through email.
Why should you send invoices via email?
There is a multitude of reasons why sending invoices via email is beneficial for your business:
It saves you money
Many businesses opt to send their invoices the traditional way – by post. This comes with a number of incidental costs including delivery fees, stamp fees, stationary fees like paper, envelopes, and more. These expenses may seem relatively small at first, but they add up over the life of a business.
With email invoicing, you can forget about all of the expenses. Simply attach your invoice to your email, and you’re good to go!
It also saves you time
Posting your invoices is extremely time-consuming – you have to print the invoices, fill in the required delivery information, package them accordingly and make a trip to the mailbox. You then have to wait and from there it’s in the hands of the delivery company or postal service. Unless you pay for express delivery, delivery dates and times are rarely certain. That means there is no guarantee when your customer will receive their invoice, not to mention the risks of missing or damaged invoices during the process. Emailing invoices can prevent all of those problems. It offers peace of mind and lets you have more time to focus on activities that add core value to the business.
It is easier to keep track
Sending invoices via email provides an easily accessible proof of delivery securely stored on your computer. Whenever you want to check, you can just go into your “Sent” folder to see the date and time that you sent your invoices. On top of that, you can also request a “delivery” receipt or “read” receipt before sending the email. That means you will get notified when your email has arrived in a client’s inbox and when your client opens it.
It helps you get paid faster
When you send invoice emails, you can technically receive your payments sooner. If your clients receive invoices earlier, they can start the payment process sooner, too.
How to send an invoice through email?
To send an invoice through email professionally, you should follow these three simple steps:
Create a digital copy of your invoice
Attach your invoice to the email
Write a formal invoicing email to your customers
Let’s break them down and look at each step in detail as below:
Step 1: Create an invoice
You can customize an invoice by yourself using free templates on the Internet. Here are some useful links that offer free invoicing templates:
You can also generate an invoice directly from your accounting or invoicing software if you use one.
Make sure your invoices are clear, easy to read, and have all the important information like invoice number, vendor and client details, purchase order number, description of products or services, payment options, etc.
Step 2: Attach your invoice
Instead of pasting your invoice into the body of the email, attach it as a downloadable PDF file. This enables your clients to save, print, or upload your invoice to their accounting software. Plus, you will leave a professional and caring impression on your customers, which enhances your customer relationships.
Step 3: Write an email
Writing emails can be time-consuming, especially if you have a lot of customers to invoice. Using a template can cut down on the amount of time spent on every invoice. Below is an example of a basic template that you can use when sending invoices to your customers:
Subject: Invoice [invoice number] for [product/service name] due [invoice due date]
Hi [Recipient’s name],
I hope you’re well. Please find the attached invoice [invoice number] for [product/service name], due on [invoice due date] below. Feel free to ask me if you have any questions.
Shoeboxed is a receipt scanner application that turns your document into digital in seconds. It is a well-trusted tool to help businesses, freelancers, and DIY accountants store and organize their receipts. Understanding the rising popularity of email invoicing, Shoeboxed offers some features associated with this process for users:
Forward or send scanned receipts
You can forward or send a digital receipt to any email address directly from the Shoeboxed app. This is helpful when you only have the paper copy of your receipts available. Plus, employees in your company can leverage this feature to send a quick expense report (with receipts attached) to you for reimbursement. It can help you avoid fraud and lost or damaged receipts.
Automatically archive receipts from Gmail
Whenever you receive an invoice in your Gmail inbox, Shoeboxed automatically picks it out and submits it to your Shoeboxed software. Those receipts are then labeled “Sent to Shoeboxed” in your Gmail account.
Next, Shoeboxed will process your receipts, extract, human-verify, and categorize important data from your receipts. With this feature, you no longer have to worry whether you miss any invoices swimming around in your Gmail inbox.
Invoicing is the final step between delivering a product or service and getting payment from your customers. A fast and efficient invoicing process will improve your financial management, provide an exceptional customer experience, and increase your chances of receiving payments on time.
In our rapidly changing world, the only way to perfect your invoicing system is to go digital. Digital invoicing, also known as e-invoicing, is the process of automating and managing your invoices totally online. With a good digital invoicing software solution, your accounting flow will be significantly simplified. Sending and receiving invoices will cost less time and money, freeing your mind from tedious administration work.
Read on to learn more ways digital invoicing software can help you and your business, and get the top 5 recommended applications on the 2022 market right now.
Benefits of using a digital invoicing software solution
Get paid faster and improve cash flow
Using digital invoicing software lets you automate almost every step of the traditional invoicing process: allowing you to create, edit, and send invoices directly from your software or to send tailored reminder emails before the due date. This ensures an efficient invoicing system – customers receive invoices quickly, and you will get paid faster too! On top of that, receiving payments quickly and on time also improves your cash flow – making it easier to keep track of and forecast your finances.
Increase accounting accuracy
Humans tend to make mistakes, especially when dealing with a lot of small details and numbers. Digital invoicing software takes that worry and risk away by offering automation, improved visibility, and end-to-end tracking. This significantly reduces common human errors like duplicate payments or miscalculations. Digital invoicing solutions will ensure precise, correct data for your accounting records.
Enhance your relationship with customers
Every customer wants a quick, accurate, and modern invoicing system. Using digital invoicing software means you won’t waste any more of your customer’s time than necessary and minimize any unwanted misunderstandings. Stay on top of your invoicing and keep your customers happy!
Top 5 recommended digital invoicing software 2022
You will find below the five most popular and highly recommended digital invoicing software on the market today.
1. FreshBooks – best digital invoicing software for small businesses and freelancers
FreshBooks is a famous invoicing application for small businesses and freelancers. This digital invoicing software allows you to customize and send unlimited invoices. Additionally, you can check to see if a client has received or paid an invoice, and you can even see if they’ve viewed it. With automatic late payment reminders and fees and insightful business reports, FreshBooks offers various features to help you refine your invoicing system.
Pricing: From $15 user/month.
Best for: Small businesses and freelancers.
2. QuickBooks – best digital invoicing software for SMEs and freelancers
QuickBooks is an easy-to-use cloud accounting software that can help you organize your invoices quickly. With QuickBooks, you can send custom online invoices from any device, schedule recurring payments, and transact in multiple currencies. QuickBooks
automatically saves your data in the cloud and syncs across your devices, making it easy to run your business on the go.
Pricing: From $10.36 user/month.
Best for: SMEs and freelancers.
3. Xero – best digital invoicing software for mid-to-large-sized businesses
Xero is another secure and reliable software solution for your business. This digital invoicing software also accepts a wide range of online payments (e.g., debit/credit card, PayPal, Stripe, etc.) and lets you bulk-invoice customers – which can save you a lot of time! Xero also guarantees 24/7 customer support to help you solve any issues or problems you have, at any time while using their service.
Pricing: From $12 user/month.
Best for: Mid-to-large-sized businesses
4. Invoice2go – best digital invoicing software for those with low invoicing volume
Invoice2go is a basic yet efficient online billing software. It’s a great choice if you are only looking for invoicing software without additional functionality. Invoice2go allows you to create a customized invoice with a broad range of templates, similar to other top invoicing software. You can also see when your clients view your invoices and have payment reminders automatically sent before the due date. Invoice2go also provides charts and reports of your business’s financial performance for further analysis.
Pricing: From $59.99 user/year.
Best for: Sole proprietorships, freelancers and very small businesses with low invoicing volume
5. Wave – best digital invoicing software for freelancers and startups
Wave is a free cloud-based invoicing software – a perfect option for small, newly established companies. This software allows you to make and send professional customized invoices, estimates, and receipts. You can also set up recurring invoices to automate your billing and track the status of your invoices on the go so that you can know when to expect money in your bank account allowing you to manage your cash flow better. It’s even better if you’re already using Wave accounting software! This is because all your invoicing data will be automatically synced and transferred to the accounting software for bookkeeping records.
Best for: Freelancers and startups.
While invoicing software can help you digitize and manage invoices and receipts issued from your business, what about the ones you receive from your business partners like a purchase receipt or bank receipts? Aren’t you tired of seeing them laying everywhere in the office? How can you organize and keep them in order?