Digital Storage for Receipts: Easy Ways to Declutter, Get Organized, & Be Ready
Post #36: Freelancers & solopreneurs should save all digital and paper receipts with an easy and fast digital storage solution.
In this Substack, I will walk you through the process of starting, operating, maintaining, and — if needed — selling or closing your own small business.
Today, I am going to offer some tips for managing all of the digital and paper receipts that are cluttering your inbox, shoebox, and everywhere in between.
Specifically, you can use:
a mobile receipt capture tool that is part of your accounting software
your smart phone and a preferred cloud file storage system
your smart phone and a specialized receipt management app that integrates with your accounting software
your own email management system
There are lots of options and methods that could work for you and your business, but this should be a good place to get started.
The goal is to find what works for you and stop the madness!
👉 Subscribe to this Substack if you want to learn how to setup, operate, maintain, scale, etc… a small business. The Journey began with Post #1.
Also, be sure to check out these FREE resources:
Bootstrap Your Business Workflow - a step-by-step guide with the links to all of the top daily posts that walk you through the process from scratch
BYB Book Recommendations - a collection of the best business books to help you on your entrepreneurial journey
BYB News Alerts! - urgent news and updates for self-employed and business owners - delivered to your inbox - so that you can be more prepared
BYB Documents - a repository of guidance for important business documents with instructions and guides to use them in your self-employment journey
Record-Keeping & Receipts
(why bother?)
ICYMI, I covered some of the most important reasons for good record-keeping, paper receipt storage, and records retention in these posts:
Now, let’s dive into the digital storage solutions!
Methods for Receipt Capture & Storage
Here are my top recommendations for capturing, storing, organizing, and referencing all of your paper (digitized) and digital receipts.
Accounting Tools with Mobile Receipt Capture
Your preferred accounting software may offer an integrated receipt capture tool that is accessed from a mobile app (by the same company) on your smart phone.
❔ How Do These Tools Capture Receipts?
After receiving the receipt from the vendor or cashier, open the app on your phone and use the integrated mobile receipt capture tool.
These tools typically have a feature that uses your camera to capture paper receipts and then extracts data from the receipt (such as amount, vendor, and purchase date).
When you are sitting down at your desk to run your expense reports or to send invoices to clients, you can easily access these digital receipts right from within your accounting software.
📌 Here are my top 5 recommendations:
Quick Books
A full-featured accounting tool for small businesses, QuickBooks offers integrated receipt scanning, automated expense tracking, invoicing, payroll, and tax preparation. Its cloud-based system ensures real-time access and collaboration.
Quicken
Ideal for personal finance and small business budgeting, Quicken provides receipt scanning, bill management, and investment tracking. It’s primarily desktop-based with cloud sync options for remote access.
Wave
A free accounting solution for freelancers and small businesses, Wave includes receipt scanning, invoicing, and basic bookkeeping. It’s cloud-based, offering accessible and straightforward financial management.
Zoho Books
Designed for businesses needing automation, Zoho Books features AI-powered expense tracking, receipt scanning, invoicing, and multi-currency support. It integrates seamlessly with other Zoho apps and third-party tools.
FreshBooks
Popular among service-based businesses and freelancers, FreshBooks offers receipt scanning, automated invoicing, expense tracking, and time management tools. Its cloud-based platform is easy to use and accountant-friendly.
Specialized Receipt Management Apps
In addition to the aforementioned accounting software platforms, there are simpler tools that you can use to handle just receipts.
In some cases, these can be optimized to integrate with your preferred accounting tool, or they can be used as a stand-alone solution.
❔ How Do These Tools Capture Receipts?
Similar to the accounting tools that have a mobile receipt capture feature, dedicated receipt capture apps work as an app from your smart phone.
After opening the app, find the feature that will allow you to capture a new receipt with your smart phone camera and then follow instructions in the app to save that photo to the cloud.
When you are back in your home office, you can open the web app with your data and access it as a stand-alone file storage system, or integrate the app with your accounting software to do a data migration.
📌 Here are my top 5 recommendations:
Expensify
Expensify streamlines expense reporting by allowing users to scan receipts, which are then automatically categorized and submitted for approval. It integrates seamlessly with accounting software like QuickBooks, Xero, and NetSuite, making it suitable for both individuals and businesses.
Dext (formerly Receipt Bank)
Dext offers efficient receipt scanning and data extraction, allowing users to capture receipts via mobile app, email, or direct integrations. It integrates seamlessly with major accounting software, ensuring accurate data extraction and real-time updates to financial records.
Shoeboxed
Shoeboxed provides a platform for digitizing and organizing receipts, turning paper documents into actionable data. It integrates with accounting software such as QuickBooks and Xero, facilitating expense tracking and report generation.
Veryfi
Veryfi offers a modern solution for managing receipts with advanced features to automate and streamline expense tracking. Its AI-driven technology ensures accurate categorization and real-time tracking.
Smart Receipts
Smart Receipts is a versatile app designed to help individuals and businesses manage their receipts and expenses effortlessly. Its customizable reports and user-friendly interface make expense tracking simple and efficient.
Cloud File Storage Systems
If you want to keep your digitized receipts in a more centralized document repository, along with all of your other important digitized business paperwork, you can leverage a cloud file storage system.
❔ How Do These Tools Capture Receipts?
After receiving the receipt from the vendor or cashier, open the camera app on your phone take a photo.
Then, open the cloud storage app on your phone and find the folder where you want to store the new receipt.
Upload your digitized receipt to the selected folder.
Later, from your home office, you can simply open your cloud storage system and review receipts in the cloud.
📌 Here are my top 5 recommendations:
Google Drive
Part of Google Workspace, Google Drive provides 15 GB of free storage shared across Google services. It supports real-time collaboration through Google Docs, Sheets, and Slides, making it ideal for both personal and professional use.
Dropbox
Known for its simplicity and reliability, Dropbox offers 2 GB of free storage with easy file sharing and synchronization across devices. It also integrates with various third-party applications, enhancing its versatility.
Microsoft OneDrive
Integrated with Windows devices and Microsoft 365 applications, OneDrive offers seamless synchronization and collaboration features. Users receive 5 GB of free storage, with options to upgrade for more space.
Sync.com
Emphasizing security, Sync.com provides end-to-end encryption for stored files. It offers 5 GB of free storage and is praised for its strong privacy features, making it suitable for users prioritizing data protection.
pCloud
Offering 10 GB of free storage, pCloud is recognized for its media-friendly features and lifetime storage options. It supports various file types and provides robust sharing capabilities, appealing to users with diverse storage needs.
Email Management System
If you are not yet ready to buy a complex accounting tool (while bootstrapping your business and there is no revenue, yet), this method is the easiest to get started.
❔ How Does Email Capture Receipts?
Many stores, restaurants, and other vendors will offer you the option to send your digital receipt directly to an email address.
Once you receive the receipt in your inbox, you can either manually move it to a dedicated folder within your email account for “Receipts”, or you can create an email filter to do this automatically for you.
Consider using folders with time periods (by month or year) so that you don’t have to wade through years of receipts within the same folder years down the road. Your future self will thank you!
📌 No need for email recommendations…
There are probably thousands of different email platforms that will allow you to do this. So, use your current system to filter and store emails with receipts for easy access from organized email folders.
Use this method in conjunction with the paper receipt method that I describe here:
The method you choose isn’t the important part - it’s getting into the habit of using it. So make sure that it’s EASY and works for you and your business!
Next Steps
In my next post, I am going to cover what to do when you don’t get a receipt for a purchase that you will need to deduct as an expense later.
Continue the Journey with Post #37 —>
Those are some awesome recommendations. I don’t have a specific one for receipts, but lens (Microsoft) is also a good one for scanning in general. I like to use it for paperwork that I need to email back to someone. Great list!