What do you mean I need my receipts?

What do you mean I need my receipts!?

This is a common question we are asked by business clients at Tashly Consulting and the short answer is YES.

Tax invoices and expense receipts from your suppliers are a key source of substantiation for expenditure incurred in your business. These help you keep track of your spending and show the impact of costs on your profitability.

For tax purposes it is imperative to retain your receipts to be able to claim valuable tax deductions and provide proof of legitimate business costs if an audit presents itself.

Another common question we are asked is whether you have to keep paper copies. And the answer is no – the ATO does accept digital copies. Digitising source documents can actually work in your favour, especially with thermal receipts which fade over time, as they can be crystallised in a photographic image. Digitising your receipts will also save you physical space and can also make searching for transactions easier.

The ATO have very specific guidelines how keeping your receipts, and it is best if you familiarise yourself with them here.

Having a system to keep every receipt is beneficial and we recommend a powerful combination of Dext and Xero software to assist in expense management for businesses…and it is as easy as taking a photo. Your bookkeeper and accountant will also appreciate the efficiency in which source documentation can be shared and saved in your accounting system, reducing the requirement for queries down the track.

‘Dexting’ is an extremely simple, headache-free process to implement. It is as easy as downloading the App, opening it, snapping a picture of your receipt immediately after you receive it, press the send button, and away you go. Your bookkeeper can take care of the rest, utilising the data extraction tools inside Dext and upload the source documentation via its integration to Xero. Isn’t that so easy and efficient?

Dext has some powerful tools including Optical Character Recognition (OCR) to read the receipt, and uses AI to suggest coding options. There are also inbuilt tools to set up specific rules for different supplies to ensure items are coded consistently and accurately.

At Tashy Consulting we use the Dext software extensively with our clients to provide best practice bookkeeping solutions, to increase efficiency, consistency and accuracy in the bookkeeping function and enabling ‘quick access’ to source documents if required for substantiation at a later date. Feel free to contact our friendly team if you’re interested in learning more about this fantastic product.

We offer Bookkeeping Packages and BAS Review & Lodge Services if you need help tidying up your records or have fallen behind in your obligations. We can also provide Adhoc Consultations via zoom meeting, or face to face, for any queries you may have, as well as Xero training if you would prefer to keep your bookkeeping in-house but need help getting started.

Tashly Consulting Xero Bookkeepers Adelaide are Registered BAS Agents #86318001, and we are dedicated to providing seamless, high-quality, transparent bookkeeping services – If you would like any further information please contact us via telephone (08) 8121 4424 or via email to discover how the multi-award-winning team at Tashly Consulting can help you better manage your business bookkeeping.

Tashly Consulting Xero Bookkeepers Adelaide – Not your average Bean Counter!

Disclaimer: All or any advice contained in this blog/newsletter is of a general nature only & may not apply to your individual business circumstances. For specific advice relating to your specific situation, please contact your accountant or other professional adviser for further discussion.

Images by Xero | Edited by @tashlydesign