Why Construction Companies Don’t Require Receipts (And the Risk)

Does your construction business require crew members to save receipts? That question might sound laughable, since it is very common for businesses in the trades to not save receipts. Here are some of the more common reasons we, here at Outpave, have heard regarding why construction companies don’t save receipts.

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It Adds Administrative Work.

Asking crews to collect, store, and submit paper receipts adds friction to already demanding jobs. Receipts get lost, damaged, or forgotten on busy job sites, creating frustration for both field staff and office teams.

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There Are Too Many Receipts.

Some businesses just have too many receipts to track and organize without the right system.  So rather than trying to find the right system, they just don’t keep receipts.

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There is Nowhere to Store Them.

The IRS can request to look at receipts for transactions that are three years old.  Keeping receipts from that far back creates significant storage needs.  And most companies just don’t have the space.

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There are Many Small Expenses.

Receipts for transactions of $20 don’t seem worth it to track or file. So, companies that have a lot of these just don’t require receipts to be turned in.

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It Might Create Tension.

Small construction companies often have tight-knit crews and office staff.  Requiring receipts can feel like a violation of trust, and many businesses don’t require receipts to avoid any possible tension between crews and accounting staff.

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Stop Putting Your Business at Risk

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Do any of these reasons resonate with you? Regardless of why your construction company might not require receipts, it is still putting the business at risk for trouble with the IRS.  Fortunately, Outpave makes it easier than ever to organize, categorize, and file expense receipts. No additional administrative work, no extra file room. Just organized finances and peace of mind.

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Get Started Today

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Ready to organize your expenses? Contact us to schedule your demo today.

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