I remember starting my career over 20 years ago, being given a carrier bag of paper receipts to analyse. Luckily for all of us, those days are over with the advancement of cloud accounting software. So, do you still need to keep hold of your paper receipts?
Are digital records sufficient?
As per HMRC, there are no rules on how you must keep your records. You can keep them on paper or digitally. Records should be retained for 6 years after the end of the period. For example, January 2026 records should be retained until 2032!
With advances in AI-powered software, there are now many efficient alternatives to storing boxes of paper receipts. Tools such as Dext and Hubdoc, or features built directly into accounting software like QuickBooks, allow you to capture receipts using your phone. These platforms can automatically extract key information such as the invoice date, reference number, amount, and supplier. This not only reduces the need for physical storage, but also saves time when uploading records and helps minimise errors through accurate digital data capture.
The invoice can then be attached to transactions, so a full audit trail is maintained from the HMRC perspective.
Many suppliers now email receipts. If this is the case, the data processing software, in most cases, has a unique email address to send the documents to and will process them digitally for posting onto your accounting software.
Still using paper receipts? Or looking to streamline your bookkeeping? Speak to us today to see how we can help.
Disclaimer
The views expressed in this article are the personal views of the Author and other professionals may express different views. They may not be the views of Lambert Chapman LLP. The material in the article cannot and should not be considered as exhaustive. Professional advice should be sought in connection with any of the issues contained in the article and the implementation of any actions.