Receipt Management of Business Expenses Using Falcon Expenses
Do your employees or contractors constantly misplace business receipts for expense-able purchases such as meals and taxis? Does this frustrate you as an employer, your accountant, or your client? We’ve got a receipt management solution for you.
Receipt Management: The Painful Back Story
Employers and accountants often deal with poor receipt management expense reports and expense records that are submitted to them. Mainly, submitted expense reports and expense records exhibit inadequate recordkeeping. More specifically, they are often missing receipts. As a result, missing receipts makes employers and accountants question if the business expense was valid or not. Or, even more concerning, this makes them
Employees, contractors, and small business owners dread when they have to remember where they put their paper receipts. More importantly, they cross their fingers that they didn’t lose or misplace any business receipts. However, often they cannot locate all of their business expense receipts. Following this, comes the process of entering the receipt data into a spreadsheet one-by-one. This often involves taping each receipt to paper so that they can be scanned and sent to whoever is reviewing. The scanned receipts also include a spreadsheet where the data was entered. This spreadsheet contains a summary of each individual business expense. The entire receipt management process is cumbersome and time-consuming. Further, it needs to be more efficient.
What Expense Recordkeeping does the IRS Require?
Proper recordkeeping is important for preventing an audit and being prepared in the event of an audit. Adequate records require that a log of the expenses be kept along with documentary evidence (i.e. such as receipts) of individual expenses. However, there are a few exceptions. Such as, expenses under $75 that are not lodging expenses and do not require a receipt. Also, transportation expenses that do not readily have a receipt available, don’t require a receipt.
The basis for an adequate expense record, and receipt management, is if it contains the following information:
For a complete guide of the details on what you need to keep for each expense type, check out this post: IRS Rules for Recording Business Expenses: Travel, Transportation, Meals
However, Small Business Owners and Clients Might Want Proof of Business Expenses with a Paper Receipt Scan or Photo
As a small business owner, accountant, or client of someone who is self-employed, we want a copy of the original receipt. If you manage employees, you often prefer to have at least a photo of all business expense purchase receipts. If you hire independents, you probably also want a copy of the paper receipt as business expense purchase proof. This serves as proof of the business purchase beyond the cryptic details that are found on a credit card statement.
Instead of the Hassle with Spreadsheets, Receipts, Scanners, etc.—Why Not Do Everything from a Phone?
Use Falcon Expenses to capture pictures of receipts on-the-go. Users simply open their phone and snap picture of business expense receipts. This is more efficient than waiting to get back to the office to enter all of the receipt data into a spreadsheet. In any event, by the time someone gets back to their office, they have likely misplaced many of their receipts.
Use Falcon Expenses to capture pictures of receipts as they are acquired. All receipts will be safely stored inside of Falcon Expenses. After, these expenses, with receipt images attached can be prepared into reports and emailed to anyone all from a mobile phone (an iPhone). Falcon Expenses provides a solution to keep every expense receipt, along with the amount, date, place and purpose associated with the receipt images.
What are Falcon Expenses Key Receipt Management Features?
Convenient Touch Scroll for Streamlined Entry of Receipt Data
Receipts uploaded to Falcon Expenses via the Enter Expense form are displayed on the top half of the screen. Further, below the receipt image on the bottom half of the screen is the expense form. The expense form is where expense information from the receipt is entered. This information includes the purchase date, merchant, expense amount, purpose and any categories and tags. To streamline entry of receipt information the user simply taps and scrolls through the receipt image attached above the form. Typically, the user will scroll until the information to be entered is in view. This eliminates the cumbersome back-and-forth of the traditional process. Further, it is more convenient and less prone to error.
Dedicated Field for Expense Purpose, Which is Not the Back of the Receipt
Adequate record keeping requires that a reason is given to deduct certain business expenses. Typically, the employee or contractor scribbles the reason for the expense on the back of the receipt. However, business expense receipts are often lost or misplaced. Therefore, a better approach is to use a mobile solution like Falcon Expenses. With Falcon Expenses, add the reason or purpose for each business expense directly into the comments field located on the form. Further, receipt logs are exported in
Inside each expense report is a column dedicated for a system generated receipt name. The receipt is named by the date entered by the user for the receipt. If more than one receipt has the same date, then the end of the system generated name is appended is a number, starting with one. Lastly, after the expense summary page, which is the top page of the expense report, the receipt images are attached. If you are exporting in PDF format, each receipt photo is attached to the pages that follow. Up to four receipt photos can be attached to each page. Further, receipt image names are located above each image. These names can be used to reference the expense data located in the report summary located on the first page.
Receipt Scanning—Falcon Enters the Receipt Data: Merchant Name, Date and Amount
Report Generation in One Tap
Easy to Read Reports
What are the Benefits of using Falcon Expenses for Receipt Management?
Never Lose a Receipt Again
Safely Store Receipts in One Central Place
More Efficiently Organize Expenses
Save Time and Money
Finally, How to Use Falcon Expenses to Capture and Manage Receipts
About Falcon Expenses, Inc.
Falcon Expenses is an iOS solution for expense tracking and management. Scan receipts, we type merchant, date and amount, auto-track mileage expenses via GPS and log billable hours with an integrated timer. Quickly organize expenses by time period, project or client and easily prepare reports for email to anyone in PDF or spreadsheet formats, all from your phone. Use for reimbursements, taxes, record keeping or invoicing. Falcon Expenses is great for professionals, freelancers, realtors, business travelers, truckers and more. Find out more, here.