Four tips to reduce time spent on tracking receipts and bookkeeping

Gone are the days when you stuffed your receipts into a file and waited until the end of the month to enter them into your bookkeeping program. New technology allows you to scan and save receipts on the spot, manage bank transactions immediately and keep on top of your finances.

Just as importantly, technology tools let you cut the time spent on bookkeeping chores and focus on what’s important – managing and growing your business. Small- and medium-sized companies across Toronto, the GTA and southern Ontario are taking advantage of bookkeeping software and apps to free up hours every week.

Here are four tips to help you be more efficient with bookkeeping:

1.       Scan your receipts

Apps like Dext (formerly Receipt Bank) allow you to scan your receipts and automatically upload the information into your accounting software. Dext works with the most popular bookkeeping programs, including Xero and QuickBooks.  

Here’s how you do it. Immediately after you have made a purchase, scan your receipt. It’s automatically stored for 10 years so you can throw away the paper receipt. Dext sorts the expense into the correct category, such as travel for hotel bills and office supplies for printer ink.

The transaction instantly appears in your bookkeeping software as an expense. No need to enter data by hand or sort through paper receipts at the end of the month.  

Here’s a related suggestion: It’s a good idea to keep your personal and business expenses separate. Have a credit card just for your business so that you can scan ALL the receipts from that card.  

2.       Connect directly with your bank
Bookkeeping software like Xero automatically downloads data about bank deposits and withdrawals. These transactions go straight into Xero every day. You don’t have to wait until the end of the month to enter your banking data and compare it with what’s in your accounting software program.

3.       Use cloud-based bookkeeping software
There are a couple of advantages to using online software like Xero instead of desktop-based tools for your bookkeeping.

Accessibility is better. You can view and enter data anywhere in the world – whether you are at a client meeting, overseas on a business trip or working remotely from home. You don’t have to wait to get back to your office to create reports or send an invoice.

Security is enhanced. When you store information at your office, you are vulnerable to theft, fire, flood or a computer crash. Data stored in the cloud is safe and sound.

4.       Outsource your bookkeeping and payroll
Bookkeeping services like Scalability take the load off your and your team, allowing you to focus on more important tasks like growing revenues. Our expert team can sometimes help you find tax deductions that you were not even aware of, reducing your taxes owing.

Scalability can also handle your payroll. Not only is payroll complex and time-consuming, you must make regular remittances of payroll deductions to the Canada Revenue Agency. A single late or missed payment can result in large penalties.

At Scalability, we’re technology forward. We leverage the most up-to-date tools to drive efficiency and keep costs low. We provide bookkeeping and payroll services to almost 100 small- and medium-sized businesses in Toronto, the GTA and southern Ontario.

For more information on how we can give you more time to focus on building your business, please contact us at support@scalability.ca.