Why Your Business Should Require Expense Receipts: 5 Key Benefits

Organizing and filing business expense receipts can be a hassle. The time and energy required to stay on top of receipt allocation and verification often just doesn’t feel worth it.  And for many companies, there isn’t enough real estate in the file room to justify keeping all their crew members' receipts. So, many businesses - particularly in the construction and trades industries - just don’t require receipts to be handed in at all.

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Why Do Receipts Matter?

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When it comes to your business, do you require your crew to turn in expense receipts, or do you feel that the effort involved isn't justified? Are you confident your current approach protects your bottom line?

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Here are five reasons requiring expense receipts benefit your business - and why you may want to reconsider your company policy.

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It Reduces Fraud

A 2024 survey from UpgradedPoints found that 27% of participants reported using their company credit cards for personal use. Without receipts, it is impossible to know what employees are purchasing on their corporate credit cards and whether it is actually related to the business.

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It Improves Budget Tracking

Expense receipts make it possible to organize, track, and manage project budgets.  Without them, costs can easily be allocated to the wrong place, resulting in inaccurate numbers, overblown budgets, and a blurry picture of project financials.

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It Is Required for Tax Compliance

If you’re planning on writing off a business expense, you'd better have the receipt to back it up. The IRS requires proof of purchase documents for all business expenses over $75. Without those documents, you increase the risk of an IRS audit and could potentially face extensive fines.

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It Encourages Accountability

Requiring expense receipts makes employees think twice before making an unauthorized purchase.  It also sends an important message that the company values transparency and creates a healthier company culture.

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It Builds Trust

Requiring employees to turn in expense receipts is one of the easiest ways to improve communication between the finance department and the rest of the company.  This level of clarity builds stronger relationships and establishes trust among the staff.

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Organize Receipts with Outpave

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Now, you might be thinking, “Ok, so saving receipts is beneficial - but it is still a hassle.” It doesn’t have to be. Outpave lets you instantly scan receipts with your phone, automatically stores digital copies, and categorizes your expenses—no extra time or file cabinets needed.

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• Digitally capture receipts at the time of purchase.
• Assign expenses with a few clicks.
• Upload PDF receipts directly into the platform.
• Store files in the platform (No filing cabinet needed)

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Get Started Today

If you’re ready to start building a culture of financial accountability within your company, request a platform demo today.  Don’t forget to follow our social channels for more information about how Outpave can improve your expense management.

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