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  • Writer's pictureJon

Receipt Capture at MyBuilderCPA



Hello, Jon Markee here, founder and CEO of MyBuilderCPA. Today, I want to talk about an essential tool in our accounting process: receipt capture. In a previous video, we discussed uncategorized transactions, and one of the best ways to prevent transactions from ending up in that category is by submitting receipts directly to us. Let's dive into how we handle receipt capture at MyBuilderCPA.

The Importance of Receipt Capture

Receipts provide crucial information about your purchases, helping us accurately categorize transactions and ensure your financial records are correct. While many businesses operate with routine purchases from vendors that send bills directly to us, there will be times when you need to buy something in person or online. We need a reliable method to collect those receipts from you.

Choosing the Right Tool

Over the years, we've used various receipt capture tools, including ReceiptBank (now Dext), HubDoc, QuickBooks receipt functionality, and the BuilderTrend Cost Inbox. All these tools are viable, but the key is to pick one and stick with it. Having a single, consistent method for capturing receipts ensures everyone on our team knows where to find and send receipts, streamlining the process.

Our Recommendation

To keep things simple, we recommend using as few apps as possible. If we choose the BuilderTrend Cost Inbox, for example, all receipts should be submitted there. This consistency helps us process receipts efficiently and reduces the chance of errors.

Submitting Receipts

When submitting receipts, please indicate if the purchase is related to a specific job or if it should be booked to an overhead account. For general expenses, write "G" and circle it on the receipt. If the receipt is job-related, clearly mark the job on the receipt. Bonus points if you can specify the class or attach the original purchase order with the receipt.

Processing Frequency

Receipt capture will be processed at the same frequency as your transaction entry:

  • Tier 1 Pro Growth Clients: Monthly

  • Tier 2 Accelerator Clients: Monthly

  • Tier 3 Starter Clients: Monthly

This ensures that your receipts are captured and categorized promptly, preventing uncategorized transactions in your bank feed.

Benefits of Receipt Capture

One significant advantage of receipt capture is dealing with heat-sensitive paper receipts that fade over time. By taking a picture of the receipt and attaching it to the original transaction in QuickBooks, you ensure you have an electronic version of the receipt that is acceptable for IRS audits and examinations. The IRS accepts electronic records, and having these receipts digitized protects you from issues when paper receipts inevitably fade.

Additional Tips

  • Descriptive Emails: When forwarding email receipts, include a brief description to help us categorize them correctly.

  • Consistency: Stick to the chosen receipt capture tool to avoid confusion and ensure efficiency.

  • Ask Questions: If you're unsure how to use the receipt capture tool, especially with email-in features, don’t hesitate to reach out.

Conclusion

Receipt capture is a crucial part of maintaining accurate financial records. By submitting receipts promptly and using a consistent tool, you help us keep your accounts in order and protect yourself from potential issues during audits. If you have any questions about receipt capture apps or the process, please reach out. We're here to help.

Thank you for watching, and have a great day!

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