Electronic receipts are becoming increasingly popular, with Estonia planning to replace paper receipts with digital receipts (in most cases) by 2025. But it’s not just governments that are making this shift. Many businesses in the Baltics have already switched to electronic receipts.
For businesses that have been relying on paper receipts for years, organizing receipts electronically can feel overwhelming and unnecessary. However, electronic receipts come with many benefits that make adopting this new technology worthwhile.
In this article, we’ll explore how electronic receipts can benefit your business, how you can digitize paper receipts, and the best software for creating and organizing receipts electronically.
In this article
What is an electronic receipt?
An electronic receipt (e-receipt) is an electronic proof of purchase customers receive after purchasing a product or service. E-receipts are created in a structured, machine-readable format and include e-invoice and payment information. While e-receipts are used in Estonia, they have not yet gained widespread adoption.
Electronic receipts and digital receipts are often used interchangeably, but there is a distinct difference between the two.
As mentioned, an electronic receipt is a receipt in a structured, machine-readable format. On the other hand, a digital receipt is a receipt in a non-structured electronic format, such as an electronic image, PDF receipt or scanned paper receipt. Digital receipts are not machine-readable.
What does it mean to digitize receipts?
Digitizing receipts is the process of converting receipts in unstructured formats (eg paper or PDF receipts) into a structured, machine-readable electronic format.
The benefits of organizing receipts digitally
Switching from paper receipts to an electronic receipts system can provide many benefits for businesses, including:
Efficient storage: With Finbite’s electronic receipts app for expense reporting, users can take a picture of paper receipts and send them to be digitized or enter the data manually. Users can also take a screenshot of receipts received through email, and upload them to the expense reporting app to be digitized.
Once paper receipts have been converted into electronic receipts, they can be added to an expense report as proof of purchase and be securely stored in the cloud, safe from loss or physical damage.
Reduced costs: Electronic receipts reduce costs by eliminating the need for manual data entry, reducing time spent organizing receipts, and streamlining tax preparation.
Streamlined expense reporting: Instead of physically submitting their paper receipts to accounting, employees can submit digitized expense reports through an app. This saves time for employees, but also for accountants since they no longer have to manually enter receipt data and systemize receipts.
Easy access: Accessing digital receipts electronically is easy. With Finbite, electronic receipts sync automatically with accounting software, allowing for easy access by the accounting department.
Improved expense tracking: With electronic receipts it’s easier to track spending patterns over time, helping businesses manage their spending more effectively.
How do I convert a paper receipt into an electronic format?
The easiest way to digitize a paper receipt is to use a receipt-scanning app. A receipt scanner is a tool that can identify essential information from paper receipts and convert it into an electronic machine-readable format.
With Finbite’s electronic receipts app you can take a picture of your paper receipt and digitize it into an electronic, machine-readable format, which can then be submitted as an expense report. Once the receipt is digitized, there is no need to keep the paper receipt.
Finbite’s receipt scanner app is a mobile app that uses a phone’s camera to scan receipts, allowing you to digitize your paper receipts when away from the office or on a business trip.
How to digitize receipts?
Finbite can also digitize receipts sent to your email in other formats (such as PDF or JPEG). Simply upload your receipt and Finbite will detect all essential information and convert the receipt into a machine-readable electronic receipt.
Some receipt scanner apps also sync with the accounting software. After digitizing a receipt, the machine-readable receipt moves instantly into the system. Users can then make an expense report using the electronic receipt as a proof of purchase.
What is the best app to scan receipts?
The easiest way to scan receipts is by using the Finbite mobile electronic receipts system. Simply take a picture of a paper receipt and the electronic receipts app will automatically convert it into an electronic receipt.
Finbite also integrates with leading accounting software in the Baltics, such as Simplbooks and Merit Aktiva. Once an employee has scanned their receipt, they can create an expense report using their electronic receipt and send the report directly to the accounting department for approval.
Using Finbite to submit an expense report is six times faster than preparing an expense report using paper receipts. And with Finbite, all electronic receipts are stored in the system and can be resubmitted at any time.
Electronic receipts FAQs
What are the benefits of using electronic receipts for a small business?
By digitizing paper receipts, businesses can reduce the time it takes for employees to submit expense reports. This makes it easier for employees to submit their expenses and be properly reimbursed. Digitizing receipts also saves time for accountants by eliminating manual receipt data entry and receipt systemization.
Paper receipts can be easily lost or damaged. However, once they are digitized into an electronic format they can be safely stored on the cloud and businesses no longer have to keep their paper receipts. Digital expense reporting also makes it easier for businesses to track expenses and properly submit them during tax time.
Using Finbite to digitize paper receipts (and PDF and JPEG receipts) into electronic receipts also comes with benefits. Finbite integrates seamlessly with other accounting systems, which makes organizing expenses even easier. In addition, Finbite’s real-time reports can give small businesses a complete overview of their accounting processes.
How to choose software for digitizing receipts?
Before choosing software for digitizing receipts, it’s essential to evaluate several factors to ensure the software meets your business needs. Here are some things to look for:
- Integration: Ensure the software integrates seamlessly with your existing accounting software or CRM tools.
- Receipt scanning technology: The software should allow you to scan paper receipts and convert them into a machine-readable format. It should also allow you to digitize receipts in other formats (eg PDF and JPEG) into a machine-readable format.
- Storage: Software should include a digital archive that allows users to store all expense reports.
- Data Security: Make sure the platform you use is secure and committed to protecting your data.
- User Interface: The platform should have an intuitive interface that allows all your employees to easily take pictures of their paper receipts and submit them to be digitized.
- Cost: Before signing up for any service provider, understand their pricing model (eg per transaction, a monthly fee, or a one-time setup cost).
- Scalability: Choose an electronic receipts app that can scale with your business, accommodating an increasing volume of users and submitted expense reports.
- Trial and Demos: Take advantage of a free trial or demo. With a demo, you can learn how to organize receipts electronically with the platform. A trial can let you test a platform’s features before committing.
What does an electronic receipt look like?
An electronic receipt is a receipt in a structured, machine-readable format. A machine-readable format is a file format that makes it easy for software applications to read specific data contained within the file. E-receipts can also be displayed in a human-readable format (eg PDF).
Electronic receipts should include key information such as information about the seller, product information and price.
Receipts in unstructured formats, such as paper receipts, PDF receipts and electronic images, are not considered electronic receipts.
What additional services are related to e-receipts?
In the Baltics, where e-receipts are very popular, there are some additional services related to e-receipts.
E-expense report: Digital receipt solutions like Finbite let users create e-expense reports from paper receipts. Users can take a picture of their business and travel receipts and within moments create a detailed expense report that automatically syncs with their current accounting software.
Digital expense reports save time for employees who submit expenses as well as accountants who must approve them.
Digital confirmation circle: Digital receipt solutions like Finbite use a digital confirmation circle to make it easy to confirm expenses.
Finbite users can easily create a digital expense report by scanning their paper receipts. Then, instead of sending the expense report to the accounting depart via email (which can be time-consuming), a digital confirmation circle lets the accounting department view the expense report and confirm it with just a click of a button.
Digital Archive: A digital archive makes organizing receipts electronically easier than managing paper receipts. A digital archive securely stores all expense reports. Businesses can access their expense reports and resubmit expenses at any time.
Compared to paper receipt storage, digital archives are incredibly efficient. Users can conveniently access Finbite’s electronic receipts system from their smart device, providing access to essential expense reports at any time. And with simple search functions, users can find the expense report they need in seconds.
Use Finbite’s electronic receipt app
Electronic receipts come with many benefits, from reduced costs and time savings to detailed expense analysis. With receipt scanning technology, converting paper receipts into electronic receipts has never been easier.
If you want to switch from paper to electronic receipts, Finbite is the perfect solution. Trusted by over 4000 companies, Finbite is the leading digital receipt solution in the Baltics. Finbite also integrates with popular software such as Simplbooks and Scoro, making it easy to sync electronic receipts with your existing accounting system.
Get started with Finbite today and see how electronic receipts can simplify your business!
