Only a few things could be more frustrating than being an online business owner and having your desk or computer buried under a mountain of unorganized receipts. Also, hunting for a lost receipt is not only a waste of time but could also mean missing out on valuable tax deductions.
Finding the time to organize chaos feels impossible, and it will usually take days, if not even months.
Organizing and keeping receipts is a basic yet essential task that often gets overlooked as businesses grow.
Most people would say the key is to do it daily and get in the habit of being organized, but even then, it can take a lot of time to organize it all. In this guide, we’ll show you how to take control of your receipts with practical and achievable tips.
Even if your business is online, your workspace could be drowning in paper. Many digital companies still print their receipts and file their administrative paperwork in physical folders. Sounds like ancient history but we are sure you can think of someone who still does management this way.
For online business owners who still prefer a physical and tangible approach, traditional methods like categorizing receipt paper into clearly labeled folders, envelopes, or binders can work well.
Common categories to file your receipts might include:
Sorting receipts this way keeps things simple, though it can become time-consuming as your business grows.
Managing receipts manually takes more time than you might think—employees can spend an average of 8 minutes on each receipt. This adds up quickly, resulting in entire workdays wasted every month on outdated processes. It’s a drain on productivity and slows down overall workflows.
Paper-based systems are prone to mistakes. Receipts can get lost, damaged, or misfiled, leading to an alarming error rate.
It’s no surprise that employees dislike managing physical receipts, this can cause them to feel burn-out as it is a very repetitive and not so fun task. Digital solutions streamline the process, removing much of the hassle and frustration that come with outdated systems.
Relying on DIY or traditional methods can lead to compliance issues, especially in industries with strict financial regulations.
Some companies that scan receipts still keep physical copies as “proof,” creating unnecessary duplication. This outdated practice increases the risk of compliance gaps, especially in regions where digital storage is sufficient and accepted.
Running an online business can feel like juggling a hundred tasks at once, right? Managing receipts and keeping your finances in order might not come naturally, but don’t worry—we’ve got you covered!
Keeping receipts seems like a chore most of us would rather avoid, but we shouldn’t, and here’s why:
Let’s explore how you can make this process easy and efficient.
The best approach for an online business would be to fully go digital, but this is merely a piece of advice and you can also choose a hybrid mode if you prefer.
For those embracing a modern solution, scanning receipts and saving them to digital folders on your computer or cloud storage offers convenience and saves space. Apps designed for receipt scanning make this process simple.
However, a fully digital approach requires a well-organized filing system and careful attention to data security to protect sensitive financial information
Spreadsheets are the queen of tracking expense methods, and they always were. It doesn’t matter if you print the files or not, you surely at least once used spreadsheets to organize yourself or your business.
This “hybrid” system means to keep a balanced mix of physical and digital paperwork. This method should be adapted to your preferences but it might be a bit messy to keep paperwork in two different formats.
The key to not panicking while creating a filing system is to start small. A good filing system doesn’t have to be complicated or cover everything at first. Start simple and slow to ensure success.
Imagine letting technology do the heavy lifting for you. Automation simplifies receipt organization, leaving you more time to grow your business.
Spend a few hours setting up automation tools, and they’ll work for you year-round. It’s like having a virtual assistant!
We know your online business is your pride and joy. That’s why protecting your records is essential. While digitization is convenient, it comes with its risks—like cyberattacks. Small businesses with fewer than 100 employees face 350% more social engineering attacks, like phishing, compared to larger corporations.
Securing your digital records keeps things safe and under control.
Do you find yourself putting off financial reviews? Don’t! Staying on top of your receipts and expenses helps you catch errors early and prepare for tax season.
A little effort now will save you big headaches later.
EcomBalance is a monthly bookkeeping service specialized for eCommerce companies selling on Amazon, Shopify, eBay, Etsy, WooCommerce, & other eCommerce channels.
We take monthly bookkeeping off your plate and deliver you your financial statements by the 15th or 20th of each month.
You’ll have your Profit and Loss Statement, Balance Sheet, and Cash Flow Statement ready for analysis each month so you and your business partners can make better business decisions.
Interested in learning more? Schedule a call with our CEO, Nathan Hirsch.
And here’s some free resources:
Organizing receipts might not be the most annoying part of running an online business, but it is not negotiable if you don’t want to go bankrupt.
Every online business owner should consider keeping their administrative paperwork tidy and organized in a reliable cloud service. This is the faster and easier way to keep everything reachable and useful. Remember to use tools like a VPN to keep your information safe and secure.
Whether your business is centered around retail, services, or any other passion, these steps will help you manage your finances effortlessly—leaving more room in your day for what matters most. So, are you ready to tackle those receipts and take your business to the next level?
