Running a business and keeping your receipts and invoices organized is a challenge. Sometimes, you just put all the paperwork together inside a box and send it to your accountant to prepare your financial statements. This seems like a fast way to deal with those pesky receipts. However, this is not the best way to run your business.
Here are the issues on keeping your “ShoeBox” method:
- High Accounting/Bookkeeping costs: If you send all your documents in a box, your accountant or bookkeeper will have to sort out all that paperwork before starting the actual work, which will increase your accounting bill.
- Tax Issues: Certain deductions or tax credits require backups. Using this method where the document is reviewed once a year increases the chances of missing invoices and receipts necessary to claim those deductions or credits.
- Managing your business: Having financial statements prepared regularly will help you understand how your money is being used and ways to reduce expenses or streamline costs.
Now, how can you switch from the ShoeBox method to a healthy financial, time-saving method?
At 777Eccounting, we make sure all our clients use an app, like Hubdoc, to capture documents – you just need to snap a picture of your receipt, and it is done! Hubdoc also processes the receipts, which saves time on the data entry process.
Here is a quick video on how Hubdoc works:
https://www.youtube.com/watch?v=qH27ZChAfdg
If you want to know more about Hubdoc and how 777Eccounting can help you, contact us at tamara@eccounting.ca and schedule a free meeting.
