Receipts Management Software

Receipts management software is an excellent tool for small businesses that need to track both incoming and outgoing expenses. In this article, we’ll explain how using this software can make it easier for you to manage your cash flow, track expenses and increase compliance with internal policies.

In this guide, we review the aspects of Receipts Management Software, receipt scanner and organizer, open source receipt management, and How do I organize my digital receipts?

Receipts Management Software

Receipts management software offers a number of benefits to businesses, from expense reporting and approval to archival and storage.

Tracking expenses can be tricky, but with the help of a good receipts management system, you can easily keep track of your spending. A receipt management solution gives you the ability to store all your receipts in one place so they’re easily accessible when it’s time for an audit or expense report—no more digging around in drawers! Additionally, the software will allow you to categorize each receipt according to its purpose (business vs personal) so that you have full visibility over where every dollar goes.

If an employee wants reimbursement for an item they’ve purchased on behalf of the company, they need first obtain approval from their manager before they make any purchases. Once approved by management, employees will be able to submit their receipts through their company’s web portal or mobile app. The receipts are then automatically uploaded into their account where it can be viewed by multiple people within the organization at any given point in time without anyone having access rights over another user’s accounts. In order for someone outside this network (like an auditor) –

Receipts management software captures details on paper receipts, including vendor information.

Receipts management software captures details on paper receipts, including vendor information. The information can be used to create a comprehensive report of all expenditures by date, vendor and item purchased.

In addition to capturing the above details, receipts management software also captures details about the amount of your transaction (including how much was paid in cash), as well as location information such as where you were when you made the purchase.

Receipts management software can also be integrated with vendor invoices so that all pertinent documents are in one place.

Receipts management software can also be integrated with vendor invoices so that all pertinent documents are in one place. It’s easier to find receipts when you need them, as well as track expenses and manage audits.

Receipts management software can help with expense reporting and approval because employees can easily select the right receipts for their report.

Receipts management software can help with expense reporting and approval because employees can easily select the right receipts for their report. If a particular receipt is not needed, or if an employee needs to add more receipts, it’s easy to do so with a few clicks of the mouse.

The software also makes it easy for you as a manager or owner to approve expenses before they go through. You don’t have to spend time sifting through piles of paper looking for receipts and invoices—all you have to do is log into your account and approve each expense individually through the secure web portal. Reimbursements are sent quickly and effortlessly—no more waiting weeks or months on end!

With easy access, audit trails and search features, receipts management software also helps accounting teams manage audits and proof of expenses.

You may be aware that audits are a crucial part of company financials. However, the process can be time-consuming and costly. With easy access to receipts, audit trails and search features, receipts management software also helps accounting teams manage audits in a timely manner.

Audits are important for financials because they help ensure that all possible expenses have been accounted for. This means that any extra costs can be included in your budgeting process—and if you’ve already paid them out with your credit card or some other form of payment, then it’s easy to find receipts in order to claim them back later on (although this depends on which receipt management system you’re using).

Receipts management software helps you track both incoming and outgoing expenses in a simple, efficient way.

Receipts management software is a practical way to manage receipts and other related documents, helping you to:

  • Track both incoming and outgoing expenses in a simple, efficient way.
  • Keep track of expense reporting.
  • Manage audits and proof of expenses.
  • Mange expense approval.
  • Manage vendor invoices

receipt scanner and organizer

Finding the perfect receipt scanner for your needs is important — you don’t want to buy a machine that can only handle one document at a time if you use it for large batches of receipts. Conversely, you don’t want to spend too much on software that includes an accounting system if you only plan to scan receipts for storage purposes.

Receipt scanners come in different forms from physical (eg. desktop and portable scanners) to digital eg. (apps and online software). But this tool can be an investment, so before you purchase one, you’ll want to understand the key features the best ones have. I’ve also compiled a list of the best receipt scanners to use for the most common business needs based on these features.

Here’s a quick rundown of the most important features to look for in a receipt scanner. You may not need all of them, but use this guide to find the perfect one for your needs.

1. Portability

If you need a way to manage expense reports and receipts for employees or contractors, you may need a receipt scanner that can be used on the go. This might come in the form of a stand-alone portable scanner or digital software.

The size of the scanner is important for portability, too. Look for a lightweight and compact device that could fit in a briefcase or backpack easily.

2. Online Accessibility

Similar to portability, having a receipt scanner that can be accessed online is convenient. You’ll have more capability to integrate with accounting software to speed up your workflow. You’ll also be able to access your receipts from anywhere at any time.

3. Storage Capacity

Whether you prefer physical storage or digital cloud storage, you’ll want to consider the limits included in your receipt scanner. WIll you be scanning receipts every day or multiple times a day? Will you use it for special occasions or only during tax season? This can help you determine the amount of storage you’ll want to have for your receipt scanner software or on an external hard drive.

Don’t forget the security of the storage you choose. You’ll want to be certain that your stored receipts and documents are protected by more than one layer of security. While printed receipts and documents can be damaged or destroyed physically, digital documents can fall into the wrong hands without proper security measures.

4. Speed

Scanning receipts for expense reports is arguably one of the least enjoyable tasks for any professional. People usually want to complete this task as quickly as possible, and a lightning-fast receipt scanner can help with that. Some scanners can take a snapshot of your documents as quickly as 7.5 seconds flat. This comes in handy when you need to scan several receipts at once.

5. File Types

Depending on what you’re using them for, your receipts may need to be in a specific format. Your tax preparer might prefer all your receipts be scanned and exported as PDFs while your work expense software processes JPEG images. Be sure to check what file types your receipt scanner supports so that you don’t have to convert them manually once they’re digitized.

6. Exportability

Finally, make sure your scanner supports your entire workflow after you scan your receipts. Will you be uploading them to cloud storage? Will you be emailing them to another individual? Your receipt scanner should be able to quickly export your scanned documents with ease.

Now that you have the key features of a receipt scanner, check out the best receipt scanner apps on the market today.

Best Receipt Scanner Apps

  1. SAP Concur for corporate expenses.
  2. Expensify for all receipt scanning.
  3. Receipts by Wave for freelancers and small business owners.
  4. NeatDesk for bulk scanning.
  5. NeatReceipts for team collaboration.
  6. Evernote Scannable for iOS users.
  7. Shoeboxed for taxes.
  8. Veryfi Core for data privacy.
  9. Smart Receipts for custom reports.
  10. Vupoint ST470 for on-the-go scanning.
  11. Brother ADS 2200 for speed.
  12. Epson Workforce ES-50 for multi-purpose portable scanning.
  13. ABUKAI Expenses for on-the-go expense reporting.

open source receipt management

Tracking expenses is vital when it comes to the overall financial planning of the company. Many companies end up overpaying for their employees’ travel and entertainment expenses due to lack of accuracy in expenses management and reporting. Unavailability of systematic expense management software also increases the frustration of the employees as the time consumed and the effort required by them to report their expenses can otherwise be utilized in acquiring more business and revenue for the company.

The key challenges faced by the business finance professionals due to lack of accurate expense management system include –

In this context, using an expense management software becomes important as it helps in tracking, controlling, and monitoring the expenses of the employees while saving their time so that they can do their core job without any distractions.

Here, we have listed the top 8 free and open source expense management software which you can consider to streamline the expense management process, which can have a big impact on your business.

But, before you go through the details of each software, we would like to brief you about what exactly is an expense management software, how does it work, its benefits, and tips to pick the one for your business.

What is Expense Management Software?

Expense management software is a solution that is used by businesses to manage travel costs, business calls, lodging, meals, shipping of documents or work-related items, incurred by the employees, managers, officers, etc.during their business trips or within office hours. The expense management software cannot be confused with spend management that takes care of different expenses of an organization like procuring raw materials, investments, and availing services.

The expense management software simplifies, and automates the entire expense reimbursement and reconciliation process. It helps in eliminating paperwork and reducing manual errors. The employees don’t have to juggle with paper receipts to get reimbursed. Also, the finance team doesn’t have to spend hours calculating the expenses of each employee manually.

The expense management process was not as quick as it is today. Let’s have a glimpse at how the expense management software came into use and its future.

Evolution of Expense Management Software

Why is Expense Management Software Required?

It is a common perception that calculating expenses can be done using excel spreadsheets, so why is it critical to invest in an expense management solution? This task of managing expenses is not as simple as it sounds when it comes to reimbursing the expenses incurred by the employees accurately on time and in compliance with the company policies.

The laborious manual process of managing expenses is time-consuming and prone to errors, which can lead to high administrative costs, decreased productivity, and dissatisfied employees.

If you multiply the above figures to the number of expense reports you manually prepare and approve for reimbursement, you may realize that the cost and time spent in this entire process is substantially higher than it ideally should be.

You may agree to the fact that “time is money.” If your employees are consuming so much time in preparing expense reports manually, instead of focusing on their core jobs, then that can truly prove to be expensive for your company in the long run.

The below benefits can truly depict the significance of expense management software for business.   

Benefits of Expense Management Software

Every business traveler would agree to this fact that it is time-consuming and cumbersome to calculate expenses and submit receipts and spreadsheets after completing their trip. After that, it is much more difficult to wait for the approvals and to get accurate reimbursements. An expense management software can solve these issues and lead to happy employees resulting in improved productivity and business profitability.

How Does an Expense Management Software Work?

How to Choose an Expense Management Software?

As there is a plethora of expense management software available, it might become confusing to choose the software that suits your business requirements. So, here you go with a simple checklist to look for while choosing an expense management software.

User-friendliness is the most important criteria you need to check in your expense management software. If the system is not easy to use, your business travelers will not use it. This will again make things difficult for your finance team despite deploying the software.

The most important question you need to ask yourself before selecting an expense management software is – can this tool adjust with the growing team. An expense management tool which works for only 5 employees and is not capable of scaling as the number of employees grows, is of no use to you.

You might be using several other tools for accounting, business traveling, attendance & reporting, etc. The expense management software you choose should integrate well with the other tools time tracking software, travel management software, payroll software, accounting software, or workforce management software you have deployed, to make your business processes quick and easy.

Now, in this digital era, everything from shopping to banking is done using the smartphone. The expense management software you select should allow your business travelers to upload receipts and download the expense reports on the go using a smartphone.

Last but not least the cost matters a lot for a business, and you would agree to this. Here, we have listed free software, but if you are planning to buy expense management software for advanced functionality, just ensure that the tool you select is worth its price.

Ideal Features of an Expense Management Software

Features of expense management software is a significant aspect which depends on your business requirements, and the way expenses are processed. Still, there are some standard features, as given below, which you can look for in an expense management software while selecting one –

Below-mentioned is a list of the top 8 free and open source expense management software with a detailed overview of their features which can help you in choosing one which suits your business processes.

The Top 8 Free and Open Source Expense Management Software

Invoice Ninja is a free and open-source invoicing and expense management software. It can help you in storing and managing all your earnings, expenses, client & vendor details in one system. It streamlines your invoicing system with a click of a mouse, supporting multiple currencies. Get a complete overview of your business expenses with extreme simplicity and ease.

If you have already used InvoiceNinja, please feel free to share your reviews here.

HomeBank is an absolutely free expense management software designed for managing personal expenses, finance, and budget. It is easy to use software and includes powerful filtering tools helping you to analyze your personal finance intricately. You can view your data in the form of beautiful charts and get a glimpse of your transactions and reimbursements quickly.

If you have already used HomeBank, please feel free to share your reviews here.

Firefly III is a self-hosted expense management software which can help you in keeping track of expenses, income, and budget. It can support different bank accounts, including credit cards, and household savings account. You can use it to organize your expenses and save money. It works on the principle of having visibility of over where your money is going so that you can stop it from going there.

If you have already used Firefly III, please feel free to share your reviews here.

Tems is a simple and straightforward expense and time tracking software ideal for small businesses and freelancers to manage their expenses and invoicing. It is a free and open source software which is used by consulting companies, lawyers, accountants, etc., who need to bill their customers regularly. It can also track the details of expenses incurred by the employees and calculate mileage automatically.

If you have already used Tems, please feel free to share your reviews here.

Skrooge is a free and open source expense management software which allows you to manage your personal finances. It is considered as the most powerful method to submit, track, and analyze expenses. It is based on KDE foundations and can run on multiple platforms like Linux, BSD, Solaris, Windows, and Mac OS.

If you have already used Skrooge, please feel free to share your reviews here.

kMyMoney is considered as a simple yet powerful personal finance management software which is absolutely free to download, customize, and deploy as per your requirements. It uses double-entry accounting principles and ensures that your finances are streamlined. Extremely easy to use, this software provides all the important features required by personal finance managers.

How do I organize my digital receipts?

The IRS suggests that you keep receipts and other records for gross receipts, purchases, expenses, assets, and any deductions you want to make (entertainment, travel, gift expenses, etc.). And as your business grows, tracking receipts can be a difficult task indeed. But, it’s getting easier with e-receipts. Want to go paperless? Read on for a quick guide on the best ways to organize receipts electronically.

Why should you switch to e-receipts?

In fact, written receipts are as old as the written word. Some of the first known receipts were recorded on clay tablets. 

Thankfully, we don’t use clay tablets anymore—too heavy, easy to break, and way too much dust! But, paper receipts are beginning to seem like a thing of the past, too. 

You may decide to switch to e-receipts because paper receipts:

How to organize receipts electronically

Having electronic receipts doesn’t mean your receipt organization skills automatically hit 100%. If you don’t have a plan when switching to e-receipts, your computer can become a mess in no time, even without the filing cabinets and folders bursting at the seams. 

We’re here to help you find the best way to store receipts electronically so that come tax time, finding what you need is easy. 

Organizing receipts electronically requires you to:

1. Generate electronic receipts (optional)

First things first: Your point of sale (POS) may still be generating paper receipts that you must collect and store. 

You can streamline this process by using a POS that defaults to paperless interactions and electronic signatures. This also helps reduce waste, storage space, and the number of receipts you personally have to transfer into an electronic format. 

2. Convert paper receipts to e-receipts

Whether or not you have electronic receipts at your POS, you still need to convert hard copy receipts to electronic format to file them. Invoices for inventory, expenses for travel, continuing education, etc. come in all different shapes and sizes. 

Luckily, converting them can be as easy as taking a picture with your phone. Keep in mind the file size so you don’t run into problems with your computer’s processing capacity. Stick to JPEG or PDF files if possible. 

You may also consider apps that have OCR (optical character recognition) which renders the text into a format that your computer can search. If you aren’t using accounting software, OCR can be helpful when looking for receipts later on.

Once you have the electronic receipts, you need to consider organizing receipts electronically. Should you put them in the cloud, on a hard drive, or both? Multiple people can access the cloud at any time, and it can be more secure than a hard drive.

3. Organizing electronic receipts

Next up: Consider the best way to save your electronic receipts. After all, you have options when it comes to receipt organization. You can choose to use:

Folders

Where to file and how to organize your files are age-old problems. Instead of a filing cabinet in a centralized location, computers make it easy to store our electronic receipts. Some key benefits of this are that:

There are different services that help store receipts, such as your Google Drive or personal computer files. You may want to also think of a more secure location, like Carbonite or Lastpass, in case you’re concerned about security breaches. 

Make sure your file names are both logical and specific, including dates when you can. Each file name should be specific enough so that you know exactly what it is and where it goes just by reading it. Your folders should work in a hierarchical order, from the most general to the most specific. 

Nesting folders is a great way to help save time because you don’t have to sift through all the files at once (only the ones you need):

Whatever you end up using, make sure that you develop a checklist or template so that you and any applicable employees can continually and properly upload receipts using a system. Store this template in a place that is easy for employees with permission to access.

Using accounting software

Don’t want to store electronic receipts in folders? With accounting software, you don’t have to. 

Upload your electronic receipts into the proper period, attach descriptions as needed, and let the program do the rest of the work for you. 

Accounting software also helps keep receivables, payables, and financial tasks organized and in one location.

4. Follow IRS rules on how long to store receipts 

You need to keep receipts for as long as your state’s department of revenue or the IRS can audit you. 

More often than not, three years is a good rule of thumb. But if things look off to the IRS, you should be prepared to dig up six years of receipts. 

And let’s be honest, six years of e-receipts is much easier to deal with than six years of hard copies. 

Some things to keep in mind

You may want to create scheduled times to process your receipts (i.e., taking the pictures, choosing the proper file name, and uploading them to the correct folder or program). These steps can take time but can be easier to manage if you break them up into smaller bits, like once every week.

Consider the different people in your business that may upload e-receipts. Do they have the information they need to do things consistently and correctly? Make sure your process and templates are clear, thorough, and easy to access by all of those involved.

Secure your receipts from bad actors, natural disasters, and file corruption. Using secure cloud locations, even encryption, may be exactly what you need. 

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