Reply to: Receipts and Freeagent - what's your workflow?

[Chart Accountancy]

The records for an accounting period are to be kept for six years from the end of that period, and typical records include evidence of money received and spent by the company, such as receipts, invoices, bank statements, and a valid invoice is required to reclaim VAT. Electronic copies of all documents are perfectly acceptable.

[ladymuck]

There's an argument that if you scan in a receipt it's always available whereas presenting a faded illegible bit of paper that's 5 years old during an investigation offers a smidge of plausible deniability. Never tested it...

[Lance]

Receipts and Freeagent - what's your workflow?

So, the daily £7 from Tesco for lunch, 3 coffees at £2 each, and a tube ticket, do I need to keep the receipts?
FA seems to recognize them these days, what I do is I keep one receipt at every five transactions, just to prove that it's for meals while at work..

For pub meals that tend to be on the £15-20, I try to put them all in FA though.

If you reclaim the VAT you really should have the receipts to prove there was VAT paid.

If not then it’s up to you, but remember that receipts are evidence.

[Skag]

So, the daily £7 from Tesco for lunch, 3 coffees at £2 each, and a tube ticket, do I need to keep the receipts?
FA seems to recognize them these days, what I do is I keep one receipt at every five transactions, just to prove that it's for meals while at work..

For pub meals that tend to be on the £15-20, I try to put them all in FA though.

[northernladuk]

What if there was a fire AND a flood?

And a swarm of locusts...

[vwdan]

What if there was a fire AND a flood?

Well, you joke, but where there's fire there's water! It's part of why fires can be some insanely damaging, as even relatively small contained fires can see the firefighting causing lots of damage.

[JRCT]

It's clutter, and lots of receipts fade. PLus they'd get lost in the event of a fire or flood.

What if there was a fire AND a flood?

[vwdan]

I don't understand the creating digital copies idea. It just adds more work IMO. Every other week I staple mine together, tot up the totals, write them on the top of the pile and enter them in to FA. Generally only food and tram, maybe consumables. Needs two or three entries into FA and file the pile in a file.

Takes minutes. I'm happy to keep the filing time to a minimum and spend the time digging them out if/when required. No point spending time dotting the i's for something I haven't had to do in 10 years.

It's clutter, and lots of receipts fade. PLus they'd get lost in the event of a fire or flood.

[FrontEnder]

I take a picture of my receipts on the FreeAgent app as soon as I get them. Icant imagine why you'd do anything else if you want a sane life.

Yep, scan, bin receipt, forget.

I try to do this, but often just shove the receipt in my wallet. So spend about 10 mins every couple of weeks catching up. Usually in the pub or while waiting for dinner when working away, so it's not like its extra time wasted.

[l35kee]

I take a picture of my receipts on the FreeAgent app as soon as I get them. Icant imagine why you'd do anything else if you want a sane life.

[DSF70]

I used to scan the receipt on my phone, upload to google drive in yyyy/mm folder (for long term storage) then attach image to freeagent submission. Chucked paper receipt.

I do similar. Use Scanbot app to create a pdf that auto uploads to one drive. Then attach to FreeAgent transaction.

It’s overkill but I scan virtually all paperwork to one drive, and then store the paperwork in date order.

Means I always have a pdf of the paperwork available on my phone /iPad.

[MrC]

pocket the receipts, bundle them all into a lever arch. Job done.
Bank feed takes care of the accounting.

This is MVP.
Why spend hours photographing and cataloging them? Life is too short.
If need be the evidence is there and can be shown with a bit more effort if and when the time ever comes.
This is JIT.

I'm such a great contractor I'm even applying the latest greatest methodologies to my expenses ...which reminds me i really must up my rate

[Poker space]

I used to scan the receipt on my phone, upload to google drive in yyyy/mm folder (for long term storage) then attach image to freeagent submission. Chucked paper receipt.

This is what I do

[SuperLooper]

The point on Amazon, or anything else online, is that if it was ever investigated it is far less hassle to scroll through my Amazon Previous Orders than a bag of receipts. And far more conclusive.

Less hassle still to just type "amazon receipt" or "sandwich receipt" or "snazzy trainers" into the Evernote search box and have it show up in a fraction of a second...

[northernladuk]

The point on Amazon, or anything else online, is that if it was ever investigated it is far less hassle to scroll through my Amazon Previous Orders than a bag of receipts. And far more conclusive.

Any lines on my online bank statement will tell me where I've traded but no less information than a receipt.

I understand that I could, theoretically, have bought a pair of snazzy trainers and not a printer for work but I still say a photograph of a receipt is not necessary in most cases.

If I bought a sandwich for my lunch from a corner shop, which was genuinely claimable under subsistence rules, the chances are that if I ask the shop for a receipt it will just have the date, the cost and the name of the shop. The same as a bank statement.


HMRC will say "What's this £4.50 receipt for?"
Me "It was a sandwich for my lunch when I was working on the client's site".
HMRC "Ok. No problem"

HMRC "What's this £69 bank transaction for?"
Me "The one that I've marked as 'New Printer'?"
HMRC "Yes"
Me "I bought a new printer".
HMRC "How do I know you didn't buy a pair of snazzy trainers?"
Me "Well, the printer's there look on my desk. You're sat next to it."
HMRC "Ok. No problem"
Me "Do you like my trainers?"

I have a feeling that conversation won't go quite as you've described there. This is HMRC you are talking about