A source document is an important part of the accounting and bookkeeping process. It can include receipts, bills, invoices – it is anything that documents a transaction. Every time a business spends or receives money, a source document is created which provides evidence of a transaction which is also known as an ”audit trail”. These documents are an integral part of the bookkeeping process for any business. The details of these documents are recorded in chronological order for the preparation of tax returns.
Even though manual receipt management is common practice it comes with its downfall. Let’s looks at some of the common issues which are generally faced by small business,
Manually managing receipts is a headache as they often need to be cross-referred for validation, this can take a lot of time as it is a manual process to validate invoices along with purchase orders. As a result, several invoices can be left in circulation which can cause chaos and delays.
In a continuous process of reporting, accountants and bookkeepers need to keep track and manage a variety of invoices which makes it difficult. Also, it is confusing with the chance of committing an error increases drastically.
- Security concerns
Manual management of receipts does not provide assurance on data security due to which receipts can easily get misplaced or mishandled.
- High-Cost Maintenance
In many organizations, bills or expenses need to go through manual approvals in departments before becoming valid expenses, this can cost a business time, money, and effort.
Digitization of receipt management
As per the study conducted by Global Business Travel Association (GBTA), for processing one receipt manually, a business needs to bear a cost of around $58, which means that you are spending tons of dollars while trying to save the same money.
Since the business is transforming, businesses generate invoices and receipts in digital formats such as images, PDF’s or e-bills. The obvious benefits of digitization of receipt management are collecting, managing, and storing tons of receipts in one place without losing any receipts.
Digitizing the documents can be done by a receipt scanning app that can store and process receipts easily, saving time for your team members while managing these receipts. Your team members can easily process these receipts.
There are several applications in the market that can help you to digitize document collection and management and MMC Receipt is one of them, MMC Receipt is a user-friendly receipt scanning mobile application, no matter how many team members you have or where they happen to be, they can use the mobile app to take pictures of receipts and upload them to the app which is easily accessible for your team 24/7.
With MMC Receipt you can easily manage invoices and receipts which will be stored securely in the cloud which can be easily accessible. With the automation of receipt management, you can easily increase the efficiency of your team members.