How to keep your receipts organized (without the shoebox)
One of my clients kept two years of receipts in a plastic tub. They're not alone. Receipts are the part of bookkeeping almost everyone puts off. The good news is that a simple system can mean that you’re only spending minutes compared to hours to keep organized.
What you need to keep
The ATO generally expects you to keep business records for five years. That includes receipts, invoices, bank statements and payroll records. This (if digital) is all recorded digitally on your accounting software such as Xero, Myob, Quickbooks as they all have photographic bills/receipt sections so that you can keep track of all of these.
Go digital
You don't need to keep the paper. The ATO accepts digital copies as long as they're a clear, true copy of the original. That means you can:
Snap a photo of each receipt as soon as you get it
Forward email receipts and invoices to a dedicated address
Let an app like Hubdoc or Dext read the details and send them to Xero, matched to the bank transaction
Once a receipt is attached to its transaction in Xero, it's stored with your books and easy to find at BAS time or if the ATO asks. This also protects you from audits!
The five-minute weekly habit
Pick a set time each week, such as Friday afternoon.
Empty your wallet, glovebox and email inbox of receipts.
Photograph or forward each one.
Bin the paper copies once they're safely captured. Keep any original your accountant specifically asks for.
Check that nothing big is missing, like fuel, materials or subscriptions.
Keep business and personal separate
The single biggest time-saver is a separate bank account and card for the business. Mixed accounts mean every transaction needs a judgement call, and that's where claimable expenses get missed.
Already sitting on a tub of receipts?
You're not the first, and it's fixable. A bookkeeping catch-up gets everything entered and reconciled, then we set up a system so it doesn't happen again. I help small businesses across Victoria do exactly that. Book a free 30-minute call and we'll get your books sorted.
