Whether you like it or not, there’s no quick fix for your tax woes. Keeping and recording business receipts are necessary evils and we’ve all got to do it. Nonetheless, there are a few tips you can follow to make managing your receipts a little bit easier.
Don’t Let Everything Pile Up
First things first, if you want to handle your receipts effectively, you can’t let them build up. Most people can’t remember what they ate last week, let alone remember what type of stationary they bought 2 or 3 months ago. As soon as you make a business purchase, always ask for a receipt and always deal with it straight away.
Discipline is by far the biggest and best way to stay on top of your bookkeeping.
Categorise Your Receipts And Purchases
It’s more than likely that you’ll make a hefty amount of business purchases over the tax year but they won’t all be for the same thing. Equipment expenses will fall under a different category to your travel expenses and these will need to be recorded separately come tax return time. To make life easier for yourself later down the line, create separate folders for receipts according to their type.
For even clearer and more manageable receipt handling, categorise each individual purchase, not just the receipts. This is particularly important if you’re buying a huge amount of business equipment in bulk, because your receipts will not always give specific details about what you’ve purchased.
You may not ever need to justify your expenses but if the time comes, this management tip will save you some serious time and hassle.
Keep Multiple Records
HMRC expect you to keep records of all business expenses for up to 5 years after the tax submission deadline of the relevant year. However, anyone who has ever kept receipts before will know that it isn’t long until they start to fade, leaving you with nothing more than a pile of old, unreadable papers. To ensure your receipts stand the test of time, keep the originals, print paper copies and keep your scans or photographs stored online as well.
Use Accounting Software
All of these receipt handling tips are really useful, if you’re in a position to record them on the go. Taking snaps, saving proof online and categorising purchases isn’t easy to do all by yourself, especially if you’re trying to run a business full time.
Accounting software can help take some of the stress out of expenses management by making it easy to record, sort and save expenses receipts on the go. Use accounting software to upload photo proof of your expenses the instant you purchase them and quickly file them away under a relevant category.
If you’re looking for a quick and easy way to manage your expenses on the go, without having to put in the hard work, bookkeeping software can be a real lifesaver.