In this digital age, the way we handle transactions and keep records has evolved. One essential aspect of modern business practices is creating digital receipts.
This blog post dives into the world of digital receipts, discussing what they are, how they work, why they're important for businesses, and how to create and store them efficiently.
Ready to streamline your record-keeping, improve your business efficiency, and help protect yourself in case of an audit? Great—let's go!
What are digital receipts?
Digital receipts, also known as electronic receipts or e-receipts, are simply digital versions of the paper receipts customers receive after making a purchase.
Customers can choose to enter an email address to receive a digital receipt instead of, or in addition to, a physical copy. These digital receipts provide all the same payment details as printed receipts, including payment confirmation for your business expenses.
Digital receipts have become increasingly popular due to their convenience and efficiency. Today, most businesses would rather receive a digital receipt than a printed receipt.
How do digital receipts work?
Digital receipts capture and store transaction information electronically. When a customer makes a purchase, the seller can generate a digital receipt containing details such as the items purchased, the total amount, and the date of the transaction.
This receipt is then sent to the customer in a digital format, whether attached to an email or via a dynamic web link, making it easier to track the receipt, store it in a digital record keeping system, and access the information later.
Why are receipts important?
Businesses track their spending to know whether or not they're profitable. The IRS also allows businesses to deduct most of their spending from their revenue before paying taxes (with different rules for different spending categories). So keeping good expense records is extremely important!
Traditionally, paper receipts were used to help bookkeepers enter expenses into accounting ledgers or spreadsheets. A small business owner might bring a box of receipts to their bookkeeper or accountant at the end of the month, quarter, or year, and that person would enter those expenses one at a time, using the date and amounts printed on each receipt.
Today, many businesses track expenses electronically, downloading transactions directly from their bank into their accounting software. So, why do receipts still matter?
Because they're still the best way to prove what those transactions were for. If you can't prove how you spent your business funds, the IRS may disallow those expenses. If your business is audited, that could wind up costing your business a fortune.
Why store and manage receipts electronically?
Managing receipts electronically offers a range of benefits for both customers and businesses. Digital receipts are easier to store and access when needed, reducing the risk of lost or faded paper receipts.
They also provide enhanced security, as digital receipts can be protected by passwords and encryption. Digital receipts can even be integrated into accounting software to streamline tax returns and expense tracking processes.
Best of all, storing receipts electronically lets systems like BILL Spend & Expense store your receipts right with your transactions. So you can say goodbye to digging through boxes or combing through email to find the receipt that matches a transition.
Just look up the receipt in BILL Spend & Expense or in your accounting software. BILL Spend & Expense integrates with popular business accounting software, even syncing those receipts automatically so you can look them up in either system, whenever you need to.
How to create digital receipts
If you buy something online, the receipt is usually digital by default—the store will either email it to you or at least let you look it up and download it from their website.
But what if you picked up markers for your white board out in the real world and the store clerk handed you a piece of paper? Now what do you do?
Today's electronic accounting software lets you store receipts digitally with each underlying transaction, but that's often easier said than done.
Until the transaction shows up in the software, you can't access it to upload it. So unless you want to enter every transaction by hand—no, thank you—you'll have to wait several days to enter those receipts.
And you'll still have to upload each one manually, which can be a tremendous amount of work for your accounting team.
A better way to manage and store digital receipts
Let's go back to that store where you bought the markers. You have a paper receipt. What do you do?
What you really want to do is snap a photo of it right now, upload it, and send it to your accountant automatically, right? Just snap it and forget it.
That's exactly how BILL Spend & Expense works—and the software is free to use with the BILL Divvy Corporate Card (issued by Cross River Bank, Member FDIC).
As soon as you run your corporate card, the expense pops up in your BILL Spend & Expense app.
- Tap the transaction
- Tap to add the receipt
- Snap the photo
- Choose a category for the transaction if you need to
That's it! Your receipt is in BILL Spend & Expense where your accounting team can see it, and it will sync automatically into your accounting software.
Imagine how much work that will save if you have 100 or more employees entering their own receipts in a matter of seconds.
“What used to take 90 hours a month, takes two. Card users get a notification, take a picture of their receipt from the app, and we close the books. With BILL Spend & Expense, click some buttons, you’re done.” — James Streeter, AP Manager, Westland Construction
Ready to manage your business receipts with automation?
BILL Spend & Expense makes uploading receipts a snap, but it's much more than a digital receipt solution. You can order as many free employee cards as you need, and you can set individual spending limits on each one for better budget control.
You can even create virtual cards for online spending—with budget limits for each individual vendor if you like. So even if someone outside your organization got hold of a card number, they can't do much with it.
And if you're having trouble with a vendor, you can cancel that card without having to enter a new card number for every other vendor you work with.
Plus, the software is free to use.
Ready to see what BILL Spend & Expense could do for your business? Schedule a demo.
“Prior to [BILL Spend & Expense], monthly expense reports were painful at best and all on paper. Now approving employee purchases, approving reimbursements for mileage, and more is so simple. It’s really helped close out the month much more quickly.” — Charlotte Wood, Director of Marketing, Family Giving Tree
Digital receipts FAQs
Here are some quick, easy answers to the most commonly asked questions about digital receipts.
How do you keep receipts digitally?
Businesses can keep receipts digitally by using accounting software or online platforms to store and manage electronic records. Create a digital filing system to store and organize your receipts, but be consistent with naming and organizing your receipt files or you'll have a hard time locating them when needed.
Spoiler alert: BILL Spend & Expense is a much easier way to go—and the software is free to use.
Why do businesses like digital receipts?
Businesses prefer digital receipts for their convenience, efficiency, and environmental benefits. Digital receipts reduce paper waste, simplify record-keeping processes, and provide a secure way to store transaction information.
How do businesses process digital receipts?
To organize and store digital receipts, businesses can use accounting software or receipt management tools to organize and manage electronic records. By automating receipt management, businesses can save time, reduce errors, and ensure compliance with IRS regulations.
