September 17th, 2021 | Updated on June 28th, 2022
How could a little thing like receipt scanning software make a difference to profitability? Very simply because receipt scanning is only a small part of what receipt scanning software is capable of.
In fact, receipt scanning software is a term used for accounting or bookkeeping systems in some cases. This is because premier solutions providers like Dext bundle in a whole suite of accounting tools along with receipt scanning software (or pack in receipt scanning software with accounting systems, depending on which way you prefer to look at it).
Receipt scanning software can reduce admin anxiety, eliminate human error, offer useful insights, encourage collaboration, and enable tax streamlining.
With happier employees, cleaner accounting, capital saved on tax, and actionable insights like revenue and expenditure, you can put receipt scanning software to work on propelling your business to new heights.
Let’s explore how receipt scanning software improves efficiency across your organization:
Benefits Of Receipt Scanning Software For Small Business
Automation Of Time-Intensive Data Entry
Receipt scanning software is able to extract, analyze and sort data from receipts, bills, and invoices within seconds. The user simply needs to upload a scan or a photograph (even one snapped from a smartphone works) to the system.
Optical character recognition technology takes over at this point – it collects all the essential details from the document uploaded and presents it as editable, copyable text.
It can even save, sort, and categorize such data based on instructions fed into the system, which is highly intuitive and therefore easy to use.
Access Records At A Click
Remember that client from a few years ago that had a similar billing-taxation issue as the one at hand? Do you recall which year it was and how it was resolved? Probably not.
Imagine if you simply had to use a simple search to retrieve records and prior paperwork. With accounting systems, you can actually achieve this level of admin efficiency. Since all your data is stored in one place, you can use a simple keyword search to find data and documents.
Minimization Of Errors In Data
In receipt scanning software, you usually get the option of linking your business bank account to your accounting books such that data flows seamlessly from the former to the latter.
Coupled with the fact that expense receipts are also being scanned by the receipt scanning system, there is very little margin for human error because everything is automated.
However this does not mean that your accountant can avoid keeping tabs – accountants must keep an eye to ensure all transactions are being reflected in your books.
Cost-Effective Data Security
At a price of as little as 40 pounds per month you can enjoy robust, internationally acclaimed firewalls – sometimes double firewall protection – for your data. On the cloud, a high level of security is essential because all categories and sizes of companies park their data there.
Your data is also saved securely for 7 years as per norms in the UK.
Tax Streamlining And Insights
Receipt scanning software can give you updates on upcoming tax laws and also deliver insights on how these laws might increase your expenses or reduce what you actually get in-hand from your sales.
Of course, the fact that you can scan receipts at a click hopefully means that you will be missing out on fewer tax deductibles, now that receipts are easier to upload making deductibles easier to claim.
Receipt scanning software is also able to sort suppliers according to tax for easy reconciliation.
Spontaneous Business Insights
With all those receipt scans as potential data points, your invoices as additional data points, and your bank statements as the ultimate data point, receipt scanning software is able to deliver business insights based entirely on hard data.
Expect to get a truly useful perspective on which clients are spending the most, where you are devoting maximum resources, cash flow insights linked to paid and overdue invoices, supply chain leaks, and much more.
On The Go Access
Receipt scanning software comes with a partner app for your smartphone, that lets you enjoy on-the-go, real-time access to your accounting books.
Business heads are empowered to make better decisions when they are looking at financials as of now, versus last week’s or last month’s figures.
Payments and invoices can sometimes be delayed due to a lack of clarity from someone in the chain of command. Get easy and quick clarity on specific line items using the in-app chat feature that you get with software like Dext. It is important to check if this feature is included by a given solutions provider as it is not a staple across brands.
When you use such receipt scanning software, you are able to deliver standardized invoices month after month, throughout the life of your client relationship.
Moreover, you can choose a professional invoice format from the templates provided. System-generated alerts and automated invoice generation enable you to completely eliminate any delays in sending invoices.
Further, time and resources can be saved on following up on invoices as the system tells you as soon as a payment is made by your client, alerts you when they open an invoice and when invoices become overdue.
Receipt scanning software makes reconciliation much easier in a few ways, as follows
- A scan of the original document is always saved when receipts, bills, and invoices are saved. This helps approvers and accountants with tallying and comparison.
- In-app chat allows you or your bookkeeper to seek clarity on specific data.
- Errors and anomalies are automatically flagged up by the system.
- Data deletions are also tracked and retrievable, resulting in increased efficiency
Expense Approvals Made Simple
Free up your time for more important things by delegating expense approvals as your business grows. You can retain your own right to approve or disapprove of an expense, but add trusted parties as approvers. Simply put, add tiers to the expense approval process.
When you do have to approve expenses, approve them at a click.