Why Are Bank Receipts Important to Every Business?

What documents are crucial to a business? Business plans, marketing strategies, or financial reports? The answer is all of them. How about receipts? Don’t forget about them because they are also important. 

There are three types of receipts that greatly impact a business: sales, expense, and bank receipts. Sales and expense receipts are necessary to calculate a business’s cash flow, while bank receipts contain detailed information about financial transactions conducted at banks.

There’s no doubt that many of you have heard about the importance of sales and expense receipts before, but not many people talk about bank receipts. Therefore, in today’s article, we’ll give you some insight into bank receipts and what makes them important to a business. 

What is a bank receipt?

We all know what a bank receipt is to some extent, but let’s break down what exactly we mean by a bank receipt before diving into why it’s important for every business.

Bank receipts are standard forms of documentation for most financial transactions. A bank receipt denotes all information related to the financial transactions conducted during your visit to a bank. Whatever your purpose to visit a bank is, either to deposit or to withdraw funds, you’ll walk out the door of the bank with a receipt. 

Typically, there are two hard copies of receipts given to both parties involved in the transaction. An account holder who conducts the transaction will get one copy while the bank keeps a similar piece. These days, many banks offer their customers a digital copy of receipts, by email or via text message, as an alternative. 

Bank receipt templates vary from bank to bank, but there are some essential pieces of information that every bank receipt includes. Mandatory details of a bank receipt include:

  • Bank account numbers
  • Account holder name(s)
  • Date of transaction
  • The total amount of the transaction

Sometimes a bank receipt includes detailed information of the bank teller who assists you with your financial transaction.

4 reasons businesses should keep bank receipts

1. Track cash flow

If you open a business checking account at a bank, you’ll receive a monthly bank statement from your financial institution. These statements summarize all your business transactions in a month with a detailed list of beginning and ending balances, as well as deposits and withdrawals. 

Generally, you’ll review your monthly bank statement and compare the transaction details with your bank receipts to keep track of your business’ spending. The bank receipts are also helpful when used along with the monthly bank statement to monitor any fraudulent charges or mistakes.

2. Solve a dispute

If there’s a dispute arising around a transaction, a bank receipt serves as trustworthy evidence. Whether a bank teller makes an error during a transaction or you accidentally miscalculate a portion of a transaction, bank receipts make it much easier to resolve disputes.

Imagine that you visit a bank and make a deposit of $50,000, but a bank teller accidentally deposits the funds into the wrong bank account. You’re actually unaware of this and leave the bank without knowing there’s a huge problem. When you realize the $50,000 deposit is missing from your account, sure it could lead to panic! 

Soon after that feeling is gone, you’ll start searching for an answer to that question. You’ll want to know what happened to your money, whether a mistaken transaction has been made, or a cyber fraud has occurred. You check the bank receipt and notice there’s an error in the bank account number. You then return to the bank to dispute the issue. The bank will use its receipt to confirm the transaction error. The dispute will peacefully be resolved. 

3. Keep the bookkeeping accurate and up to date

Bank receipts are generally a very helpful tool for your bookkeeping practices. Bank receipts are proof of all the financial transactions that impact your cash flow. Many banks recommend businesses balance their account books on a monthly basis. Therefore, accountants or bookkeepers will go over monthly bank statements and cross-reference this data with the bank receipts which have been gathered for a given month. 

Bookkeepers also use bank receipts for data entry purposes to track credit card payments, which can help you stay on top of your payments. With good bookkeeping practices, bank receipts can even help you improve your credit score over time.

If you’re a big business which has plenty of receipts, cross-checking data from bank statements and bank receipts manually can be labor-intensive. Many companies have switched to a digital bookkeeping tool which can do the same job as a bookkeeper but can be more efficient to some extent. 

A bookkeeping management software allows businesses to scan, store, organize and track receipts with ease. Bookkeeping software developed by Shoeboxed is an ideal tool for every business. Not only can you organize and track receipt data, but you can also use Shoeboxed to make expense reports for tax preparation or reimbursement.

4. Claim tax deductions

When you’re running a business, you must pay tax. It’s a legal obligation. There are several taxes that every company has to pay, and it’ll result in a loss of your profit. But, there’s also a tax deduction that lowers an organization’s tax liability. 

Deductions are typically expenses that the taxpayer incurs during the year that can be applied against or subtracted from their gross income to figure out how much tax is owed. The tax deduction rate varies from company to company, depending on whether you run the business as a sole proprietorship or use a legal entity such as an LLC or corporation. All in all, businesses often claim tax deductions to save some money. 

No matter if you’re a home business or big-name company, you’ll go through the same tax reduction process. The first step is to collect proof of purchase for your business expenses. Bank receipts which record all your expenses in a given year are solid evidence. Next, you just need to find the right tax form and fill in all the details. The last step is to submit the tax form, and you’re good to go.

The bottom line

Bank receipts are of no less importance than any other documents in a business. Bank receipts allow businesses to track their cash flow, solve disputes, keep the bookkeeping up to date and even claim tax deductions with ease! If you think they’re important and should be kept in a safe place with high accessibility, think of scanning and storing them on the cloud. Shoeboxed allows you to turn that awesome idea into reality. Try Shoeboxed today!

[New Feature] Build Custom Expense Summaries with Shoeboxed Reports

After months of testing and user feedback, we are proud to announce that the new Reports section of the Shoeboxed Web App is out of Beta and now an official Shoeboxed feature!

After months of testing and user feedback, we are proud to announce that the new Reports section of the Shoeboxed Web App is out of Beta and now an official Shoeboxed feature!

The new Reports allows users to create customized expense reports based on parameters like date, categories, and vendor name. Unlike older versions of Shoeboxed expense reporting, the goal of Reports is to give users an effortless way to create detailed and custom-built financial summaries using their receipt data.

When you log in, you’ll notice that the new design is very distinct from the Beta version. The look and feel is now consistent with the rest of the web app, and you no longer have to bypass a summary screen before creating a new report. The new permanent Reports section is also cleaner, faster, and less buggy.

Here’s a quick summary of what you’ll see in the new Reports section:


New, Cleaner Interface

Shoeboxed Reports
Build new reports, navigate through old ones, and download reports in one centralized location.

Once you click the “Reports” tab, you’ll be taken to a screen that includes a list of past reports on the right (that you can download straight to your computer) and the Reports builder on the left. The colors, fonts and buttons have also been updated to match the rest of the web app for a more pleasant and reliable in-app experience.


Autofill Smart Filters

Shoeboxed Reports
Look for specific categories and vendors in a fraction of the time using new autofill filters.

Vendor names and categories will now be searchable using autofill and a drop-down smart filter selection. In other words, if you start typing “ta” for “Target”, you will see a list populated with possible vendor name matches (it’s like Google search, but for your receipts!)


Quick Links for Date Ranges

Shoeboxed Reports Date Range
Use quick links to the right of the date boxes to instantly select a date range for your report.

We added date range “quick links” in the date filter section so that you can select common date ranges for your receipt reports without having to manually select them from the drop down calendar.

But Wait! We Still Need Your Help

We've gotten user feedback requesting pre-generated "quick reports" that would provide detailed expense summaries without a user having to build them. What kind of specific pre-generated "quick reports" would you like to see automated in your Shoeboxed account?