One of the most challenging financial tasks for many people is effectively managing receipts. The volume of receipts collected during the course of an ordinary week — and multiplied by 52 — could mean hundreds of pieces of important expense info scattered about the house each year.
The clutter alone may be bothersome. But more important, the lack of smart receipt management may have negative impacts on financial health and controlled spending.
Enter digital scanning and storing methods, which can transform receipt filing – helping to monitor and keep track of receipts in real time as well as aid in budgeting and financial planning.
This guide for beginners offers smart receipt management practices to help streamline expense tracking and boost financial management.
Smart receipts are digital versions of paper receipts. Often called e-receipts or electronic receipts, these come in the form of electronic records sent to someone from a retailer via email or text, or accessed through an online app or online portal.1
If a retailer only provides a paper receipt, the receipt can be scanned via app or scanner at home and put in a digitized form. Then, just like that, it's a smart receipt.
Smart receipts also have distinct potential advantages:
There are various types of receipts that can come in different digital formats, including:
While availability and steps may vary depending on the purchase, retailer/seller, payment method, and potential use of an accompanying app, here’s how smart receipts generally work:
To start digitizing paper receipts, choose a scanning device. This can be a small scanner (some are even dedicated to receipts) that physical receipts can be run through.
There are also scanning apps that can be downloaded to a smartphone. In this way, scanning an image of a receipt can be done at the point of purchase.
Create a routine for collecting, sorting, and digitally filing receipts and stick to it to avoid having paper pile up. This could be done weekly or monthly. If needed, write notes on the receipt before scanning it to clarify the purchase and its purpose.
Don't forget about quality. Details on printed receipts can be tiny or blurry so check that the scanner settings are optimal and adjust resolution, if necessary. Scanners made specifically for receipts may offer the best quality.
Be sure to keep all physical receipts until the scans are successfully stored in a digital system.
In thinking about an effective digital system, organizing receipts around "type" can help with expense tracking. By sorting receipts into distinct categories, spending patterns can become clearer and weaknesses identified. This deeper look into spending can show where costs could be cut or funds redirected, as well as provide insights into longer-term personal finance trends.
A digital receipt filing system should align to personal or business needs. Here are some tips for organizing digital folders:
Once a system for expense tracking is created, consistency is key. Try not to change the organization, which could lead to misplaced receipts and invoices. Keep the same categories, labeling, and storage methods over the long haul to aid in tracking expenses over time.
Save cash back offers from top brands. Plus send money, track packages, and more.
Smart receipts simplify record-keeping and expense analysis by automatically storing transactions in a digital format. Whether the need is for expense monitoring, tax preparation, or budgeting, the automation that digital tools and apps provide can potentially be a big benefit in gaining control over one's' spending.
Here are some possible advantages to adopting smart receipt management practices:
When choosing a digital receipt management platform, consider the security and protection it offers. In order to protect sensitive information and keep data private, electronic storage should have encryption and backup options. Look for reputable companies that offer these services and are compliant with data protection regulations.
Additionally, it is wise to encrypt data. When smart receipts contain sensitive data or credit card information, make sure the storage format utilizes encryption methods to help safeguard the personal data and protect against fraud.
Separately, it’s important to keep data from being lost. Make sure smart receipts and financial documents can be accessed from different devices. Using the cloud offers access from a computer, tablet, or smartphone. This way access can be enabled anywhere there's an internet connection. And remember to back up data. A cloud storage service may be able to automatically back up receipts and transaction information. An external hard drive also works but will need to be updated manually.
Digital wallets can be a one-stop shop for accounting and record-keeping — like managing digital receipts, tracking packages and returns, inputting spending, and getting cash back offers or personalized recommendations related to past purchases. PayPal’s digital wallet is one example of an all-around expense tracker that can manage digital transactions from almost anywhere.
Learn about shopping with PayPal.
We use cookies to improve your experience on our site. May we use marketing cookies to show you personalized ads? Manage all cookies