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4 Reasons Why You Need Digital Receipt Automation Now

4 Reasons Why You Need Digital Receipt Automation Now

Are you reaping the rewards of adopting a cloud-based accounting platform? Have you experienced the benefits of an AI-powered receipt capture app with optical character recognition technology, receipt tracking software, or automated receipt management software? If you haven’t, then today is the day to get started!  Repetitive tasks like general bookkeeping and data entry can be automated. 

Imagine the time you could save managing expenses if you weren’t tracking down physical receipts, matching, verifying, categorizing transactions, or searching for errors and duplicates. Moreover, what if you could use an AI-powered expense management tool that gains intelligence and continuously optimizes the entire expense management workflow? Docyt can make this your reality!

Not convinced? Consider the following questions:

1. Do you remember what you bought last month or the details of each purchase?

To efficiently categorize and reconcile expenses, you need to know what you bought. Bank or credit card statements only provide a limited view of purchases and lack the necessary details you may be asked for. Digital receipt management, a feature often incorporated into automated accounting software solutions like Docyt, stores receipts for you. Access to automated receipts gives you a complete view of your purchases, including detailed line items, shipping information, product images, and even embedded live links.

The beauty of automated receipt management software, like Docyt, is that it automatically syncs with your accounting system, automating bank reconciliation and expense management workflows using artificial intelligence to categorize, match, and enhance transactions with precision.

With all your receipt data in one centralized place, you can effortlessly search thousands of records and instantly see a comprehensive view of your spending data, assess your habits, and identify where to improve or adjust your spending.

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2. Are you audit-ready?

Retaining your receipts for at least 3 to 7 years, or indefinitely, is a regulatory requirement, depending on the transaction type. The IRS Publication 583 states, “Evidence of payment of an amount, by itself, does not establish that you are entitled to a tax deduction. You should also retain other documents, such as credit card sales slips, receipts, and invoices, to demonstrate that you incurred the cost.”

Most vendors only keep up to 2 years of your purchases, making it even more important to ensure that you retain all expense-related documentation. Without it, you could be out of compliance and even penalized in the event of an audit. Ultimately, automating your receipt management will make staying compliant with current and future regulations a much easier task.

3. Do you currently engage an accountant or have help with bookkeeping?

With an AI-powered automated accounting software like Docyt, your receipts are all kept in one cloud location, making them simple to access and/or share with your internal finance team, bookkeeper, or accountant. This dramatically improves collaboration, saves time, and boosts productivity. Automation eliminates data entry errors, ensuring your receipts are correctly categorized, and there are no duplicate transactions. 

As a small business owner, you can avoid endless back and forth with your bookkeeper to explain receipts, identify data entry errors, or hunt down information during tax time. The beauty of AI-powered accounting solutions like Docyt is that they handle the majority of your accounting in real-time, from reconciliation to connecting with your accounting system, like QuickBooks, adding journal entries to your general ledger with little to no human intervention and inserting 100% confidence in the accuracy of your data.

4. Are your receipts safe? Secure? Backed up?

Access to accurate business intelligence could easily be the most critical priority for a business, and data loss is more common than most people are aware of. According to Data Recovery Labs, “data is the single most valuable asset owned by many companies, yet data loss still costs $12 billion each year in the U.S. alone.” 

Any loss of data, be it because of a ransomware attack, hard-drive failure, or a simple accident like spilling a drink, can be a devastating event to your business; digital receipts are archival and future-proof – so you can toss your paper receipts and PDFs without concern.

We already mentioned the importance of audit documentation, but have you considered other scenarios where you might be required to provide hard evidence of purchases? How about for insurance purposes: a roof leak, loss of company vehicle in an accident, injury, or theft? According to State Farm, receipts are needed to help you file an insurance claim, make coverage decisions, secure a settlement, or verify property loss for taxes in case of fire, flood, or other casualties. 

Insurance companies or creditors can require you to retain records indefinitely. Without taking advantage of digital record management systems, this can be a legitimate challenge. 

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Now is the Time: Automate Your Business Today

Are you ready to gain all the benefits of accounting automation and know you are prepared for the future? With Docyt, you can transform your business into a completely digital experience with a fully automated expense management workflow. AI-powered automation accounting software provides peace of mind and audit readiness and manages your business’s financial health in real-time with precision and ease. 

Choose a technology partner who understands the needs of your business. To learn more about how to automate your receipts and streamline your accounting workflow, contact Docyt today.

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