RECEIPT ORGANIZATION ///
For small business owners, year end means organizing your receipts. It’s not fun but an organized collection of receipts can make tax time much easier! The two keys to making sense of your expenses are finding all of your receipts and then grouping them into categories.
1 // Where are your receipts? Are they in your car? In your purse? Filing cabinet? Desk drawer? Shoebox? Or maybe they are in your email and unprinted? Take a few moments to make a list of all the places you may have receipts hiding in. Then spend some time going through each of those places and gathering together receipts for business expenses for the current year. Don’t worry about sorting them right now, just get them all in one spot.
2 // Once you have all your receipts together, then it is time to start sorting them by expense categories. Some common category examples are advertising, office supplies, legal and other professional services, utilities, repairs and maintenance, and meals and entertainment. Depending on how many receipts you have, you could make an envelope or a file folder for each category, clearly marking the category name on each. Then you could put each envelope or file folder into a larger storage box.
You could stop there but if you are tech savvy you could take it a step further and use a file management app such as Shoeboxed Receipt and Mileage Tracker. With this app and others like it, you can simply take a photo of the receipt and the app extracts the necessary information like vendor, date, and amount and also marks which category it belongs to. The app then allows you to send a categorized expense report from your phone, with the receipt images attached. (This particular app can also track mileage for you). There are many receipt organization apps out there so take a look in the App Store and choose your favorite!
Nobody is excited about organizing their receipts but it is critical for good bookkeeping and it helps you save money on your taxes too!