EXPENSE RECEIPTS: What Is It, How to Make It & Best Apps

It can take a lot of time and effort to fully grasp the regulations governing reimbursement claims. Expense claims are one of the most annoying aspects of employment due to the hassle of having to pay for expenses out of pocket, fill out paperwork, and keep track of relevant receipts. However, the process of submitting an expense report is annoying not only for workers but also for management. Employers must take into account the proofs of payment they must keep, as well as how to preserve them, make them accessible when paying taxes, and where to keep them. This idea is generally straight. An employee incurs a business expense while acting in the course of their employment, and the employer pays them back. But precisely how should one make expense receipts and what are the best expense receipts app? How do you enter expense receipts online in Express and Quickbooks?

Find out more….

What Is an Expenses Receipt?

An expense receipt for business is a receipt for a purchase made by an employee or contractor in the course of performing services for a company. When an employee or contractor submits an expense report for reimbursement, they must include all relevant receipts as proof of purchase.

To capture or recoup the cost of any purchase made on the job, such as business travel, supplies for the office, or equipment for use in a client meeting, you will basically need an expense receipt. Employees have typically been expected to submit these expense receipts with an expense report that is processed regularly in order for employers to reimburse any costs incurred.

With the help of apps that let you take a snapshot of the receipt using a camera phone, more recent travel and costs programs enable processing expense receipts considerably simpler. The OCR (optical character recognition) technology may be used by the app to extract important information from the image. They will include the time, sum, VAT %, and name as well as the address of the merchant. The employee may be able to upload the photo as proof in less sophisticated solutions, but they may still have to fill out the digital form by hand.

Employers verify that the expenses claimed are for authorized costs by looking at expense receipts. Organizations frequently have cost policies that specify what employees are eligible to claim, how much they are permitted to spend, and whose suppliers they are permitted to use. These receipts will be examined by the expenditures department of a large company to ensure compliance.

How Expense Receipts Work

The finance or HR team may be in charge of reviewing expense receipts in smaller businesses. Several top companies employ digital cost management solutions to speed up the tedious process, including automatic approvals for some products and the ability for managers to evaluate and authorize claims online or through mobile apps.

Receipts for business expenses serve as more than just proof that the employer will reimburse the expense. They are also required by tax enforcement (HMRC, IRS, etc.) to confirm that the business has complied with all tax laws governing business expenses.

Employers can improve the accuracy of their employees’ expense claims by making it simpler for them to submit receipts directly. For example, there is less possibility that an employee will misplace the receipt, fail to claim it, or perhaps request it months later if they can submit a mobile phone image of the payment for refreshments at a client meeting in a resort coffee lounge while they’re waiting for the beverages. Top tourism booking and spending management software include travel booking functionality, enabling users to plan, reserve, and create tickets for travel and lodging.

Employers might benefit in a number of ways from processing expenditure receipts more quickly and accurately. When OCR is utilized to automatically record the figures instead of having the employee rekey data, it leads to the accurate submission of more claims. The employee gets more convenience by enabling line-by-line expense submission, which allows the uploading of receipts as soon as the charge is incurred. Instead of getting a bit of a shock at year’s end when staff eventually get around to entering a backlog of expense receipts, businesses may keep track of spending charges in real-time.

Do I Need Receipts for Expenses?

All businesses must document all costs over $75 in writing for submission to the Internal Revenue Service. The lack of a receipt for such costs is generally frowned upon. Even if a receipt isn’t required, it’s always a good idea to document any payments you make. Any type of written documentation, such as a diary, spreadsheet, or computer log, will suffice.

What Receipts Are Required for Expense Reports?

In contrast to purchases, expenses are money spent on running your business. Provide a description of the item you purchase or services you receive, the date you make the expenses as well as the amount you pay to prove that you spend the money on legitimate business needs.

What Are the 4 Types of Expenses?

Whereas all expenses have an impact on your financial records, they have the most impact on your income statement. Expenses are broken down into five categories on the revenue statement, including;

Financial Expenses
Cost of Goods Sold
Operating Expenses
Non-Operating Expenses
Extraordinary Expenses

What Are the Three Types of Receipts?

A receipt is a document attesting to a transaction; it serves as the evidence of purchase that merchants provide to clients when they pay for a good or service, among others. Depending on your kind of purchase, you could receive a variety of receipts. Electronic receipts are already available, and they are just as legitimate as paper ones as a result of the worldwide expansion of e-commerce.

The taxonomy of receipts includes the following sorts of receipts:

Original
Credit Card Slip
Invoice

What Type of Receipts Should I Keep?

The following is a list of purchase documentation or receipts you should kee:

Canceled checks or other records that provide evidence of payments or
Electronic funds transfers
Tape receipts from the register
Statements and receipts for credit cards.

Expense Receipts App

Generally, you must maintain accurate financial records as an independent contractor, business owner, or entrepreneur. However, you don’t necessarily need to start keeping or saving receipts just to do that.

Nowadays, you can keep organized, obtain your write-offs, and do it all with a few taps on your phone using expense receipts apps.

With these receipts apps at your disposal, you’ll stop delaying the unpleasant expense reporting process and start finishing it immediately. There are apps with functions that make the process, should we say, even slightly enjoyable, whether you’re tracking spending every week or just occasionally taking business trips.

It is worth checking out the top mobile receipts tracking apps that will enable you to monitor an expense on the go. They will help you do just that in more depth than most personal financial management apps. Regardless, take time to find out which ones provide data extraction, report exporting, receipt scanning, and other services. Hence you can select the one that possesses what you’re looking for in expense receipts tracking apps.

Read Also: EXPENSE REPORT: Meaning, Software & How to Fill Out

Best App for Expense Receipts

There are many effective apps for expense receipts and managing spending. Here are the top apps for expense receipts, which range from a potent all-in-one tax solution to an app that converts foreign currencies.

#1. QuickBooks

QuickBooks gives small firms that are about to grow the chance to do their own accounting. The software allows you to link your PayPal, Square, bank accounts, credit cards, and much more. It integrates all of the purchases on each of these accounts and categorizes them as well.

You can take pictures of your receipts and have QuickBooks mobile app preserve them for you. All of the information is instantly matched to past transactions on your account. Also, if you ride for work, the app will monitor your mileage by using GPS on your smartphone.

For independent contractors or new small enterprises, QuickBooks may be too complex. However, this tool might be for you if you oversee a growing workforce and feel overburdened by your accounting requirements.

#2. Expensify

Expensify, a favorite among regular travelers, enables you to streamline your spending monitoring while on the go. Simply take a picture of any receipt linked to the company and upload it. It’s simple enough, regardless of whether you’re at a business dinner, standing in line at the airport, or even touring Disneyland.

You can immediately connect those applications to Expensify to import your purchases if you use rideshare solutions and stay in hotels while on business. Supported services include Uber, Lyft, Airbnb, and HotelTonight.

Do you prefer to drive when you go on business? Expensify also has no issues with that. The app lets you keep track of your distance.

Expensify can be used via a web browser in addition to being compatible with Android and iOS devices. There is no disputing that this app has really made a name for itself in the corporate travel industry, even if it functions as an all-purpose receipt tracker. If you don’t travel frequently for work, you might want to look at alternatives to Expensify.

#3. FreshBooks

This mobile receipt app is part of the cloud-based accounting software. Simply use your phone to take a picture of any receipt, then enter the information you’ll need to complete your taxes, such as the location and the reason for the purchase, the sales tax you paid, as well as whether the item is chargeable.

Every receipt you type, together with all of its associated information, will be added to your FreshBooks account. This implies that syncing many devices is simple. If you adjust something on your laptop, for example, the update will be visible when you check in on your smartphone the next time.

Although sending and processing invoices is not FreshBooks’ primary function, organizing receipts is. Because of this, it’s a fantastic choice for contractors who manage several clients.

#4. Evernote Receipts

Notetaking is Evernote’s claim to fame. However, it’s also quietly establishing a name for itself in the field of expense reporting. You can save images of your receipts in the Evernote Receipts app and employ them to create expense reports for your taxes. Use the traditional note-taking app to view these.

You can search for specific receipts with the aid of image recognition in Evernote Receipts. It could really track your mileage as well as organize one’s personal as well as business expenses.

#5. Abukai

Abukai is the receipt tracker for you if most of your business trips take you abroad. This software is perfect for travelers and can easily read receipts from other countries. The best part is that it provides real-time currency conversion so you can calculate your precise dollar expenditure.

Simply take a photo of your receipt with your iPhone, Blackberry, or Android phone to utilize Abukai. Along with the category of your purchase, the merchant, the date, and other information, Abukai will save the photograph.

Abukai’s free plan enables you to produce up to 12 cost reports annually. Unlimited reports are included in premium programs, which start at $99 per user per year. But, it may cost you more to let colleagues and members of the team accessibility to your account.

#7. Dext

Dext, formerly Receipt Bank, offers three methods for digitizing receipts: a mobile app, email integration, or an online interface.

This app also allows you to upload a single photo with several receipts. Moreover, you can connect your PayPal or Dropbox accounts with your credit card to have new transactions imported automatically. Dext also works with other accounting programs, such as Sage, Quickbooks, and Gusto.

Dext is in the ideal position to help auditors and bookkeepers. In addition, it can help business owners who produce tons of receipts get and keep organized.

Subscriptions start at $20 per month for 300 documents. While the premium Enterprise plan costs $60 per month, it allows you to enter a staggering 4,000 documents.

#7. Wave

Wave offers an easy way to manage your funds if you’re a freelancer, business founder, or entrepreneur with basic accounting needs.

All of your income and expenses are displayed on a single screen with this user-friendly tool. You can access it from anywhere at any time as long as there’s an internet connection since it’s saved in the cloud.

Even while you’re offline, you can take a picture using Wave’s receipt scanning app. When you next have access to the internet, the receipt will automatically upload after you have seen and approved your transaction details.

You can maintain track of your accounts by using the Wave app to stay updated on payments, invoices, and bank information. The app is entirely free, which is best for freelancers as well as business owners who are just getting started.

How to Enter Expense Receipts in Quickbooks Online

Using QuickBooks mobile app, you may take and store pictures of receipts, and we’ll instantly match all the data on the receipt to an existing transaction. Hence, you will agree tracking expenses has never been simpler.

To keep things organized, QuickBooks automatically groups spending into categories. Plus its simple spending tracking will ensure that you never miss a tax deduction.

QuickBooks keeps track of your costs all year long, allowing you to predict and easily manage your cash flow. Check your available funds using the integrated cash flow statement to ensure you have enough to pay your obligations.

Simply take a snapshot of receipts and include the billable expense in your notebooks if you charge your clients for costs you’ve incurred. The billable expense should then be added to the invoice along with the receipt.

Your receipts are used by QuickBooks to extract expense data such as date, vendor, amount, and payment type. Afterward, QuickBooks either create new expenses with your permission or perhaps match your receipts to already-existing charges.

How Do I Track Expense Receipts in Quickbooks App?

The QuickBooks app possesses a tool with the name “Projects”. This feature helps you simplify tracking and accounting for chargeable expenses. It organizes all of your project-related data, including invoices, expenses, time worked, and other specifics, in one location. Regardless of the task, with Projects, you may accurately track and account for chargeable expenses.

Express Expense Receipts

ExpressExpense is a receipt creator that enables you to produce receipts for any purpose. Reprint a receipt that has vanished long ago, generate a receipt to amaze your colleagues, or generate a receipt for merchandise that you offer.

Based on the data you submit, Express Expense’s free online receipt creator generates professional-quality receipts. Simply select a receipt template, alter the produced receipt, and afterward download or print it. You may not use the ExpressExpense service to produce fictitious or fraudulent documents. All usage liability for ExpressExpense.com receipts is assumed by the user.

With any inkjet or laser printer, you can produce expense receipts on Express. They provide a companion app, “Instant Thermal Print,” to print receipts on actual thermal receipt paper.

Express generally provides one Complimentary receipt design for usage by all customers. And you can also decide to sign up as a member if you want access to more receipt template options. there are yearly and monthly membership options while The PRO and Enterprise plans include ALL receipt templates.

With Express Expense technology, you may create receipts that you can print on any inkjet or laser printer. You can also use a Bluetooth thermal printer and the FREE mobile software Quick Thermal Print to print your own authentic receipts.

How Do You Keep a Record of Expenses?

You can basically keep the receipts and paperwork you want to save for each category in file folders or sizable envelopes. Moreover, when it comes time to file income taxes, you may keep your monthly cost summaries in a separate folder to make finding them simple.

Why Do Accountants Need Receipts?

It’s important to keep track of receipts when running a business. Receipts serve a number of purposes for businesses, including as evidence of payment, justification of tax deductions, recording of expenses in the income statement, as well as verification of the ownership of assets in the balance sheet.

Conclusion

No doubt, the process of submitting an expense report is annoying not only for workers but also for management. Regardless, employers must take into account the proofs of payment they must keep, as well as how to preserve them, make them accessible when paying taxes, and where to keep them.

When an employee or contractor submits an expense report for reimbursement, they must include all relevant receipts as proof of purchase. To capture or recoup the cost of any purchase made on the job, such as business travel, supplies for the office, or equipment for use in a client meeting, you will basically need an expense receipt.

While it might all seems daunting, with the help of apps that let you take a snapshot of the receipt using a camera phone, more recent travel and costs programs enable processing expense receipts considerably simpler.