How do I deal with my own receipts?
Digitisation despite or with internal documents, while complying with laws and the GoBD
Receipt submission in general
We have already written about receipts and digitalisation in other blog articles here.
At the same time, of course, it remains one of the central aspects of a travel expense accounting application: How do receipts get into the application and how are they processed, digitised, checked, submitted and paid out there.
In order to deal with this, it is always helpful to familiarise yourself with it first,
- What is a receipt anyway?
- What kind of receipts are there?
- Who has receipts for the travel expense report?
- How do they arrive or where do they come from?
And then there is the topic of internal receipts.
- What is that?
- How do I create it?
- What effects does it have?
Initial answers to these questions
A receipt is basically any form of proof of a payment, i.e. essentially a piece of evidence. These can be incoming or outgoing invoices as well as receipts or proof of deposits, but also a tax assessment notice, etc.
In the context of business trips or expense reports, we usually understand proof of payment for all travel expenses. And here, too, we come across all kinds of receipts. Think, for example, of ordinary incoming invoices that you receive from hotels or airlines. However, there are also receipts for taxi journeys, for example, or small slips of paper from car park ticket machines. And even here there is a wide variety, e.g. with or without VAT.
If we move on to the area of hospitality, it becomes clear once again that there are not only different receipts, but also different requirements depending on the situation. These depend, for example, on the amount that was to be paid. A simple receipt for two coffees and two pieces of cake at the bakery-cafe on the corner may be enough. If you are catering for your guests in a restaurant and the sum involved is in the mid three-figure range, it will be necessary to demand a proper bill that meets all the requirements of such a bill.
Let's take a quick look at where receipts for travel expenses can accumulate in an organisation. I can think of some very different places and people. E.g.:
- With the travellers themselves
- In centralised travel management
- With the team assistance
- In an external travel agency (which works for you as a service provider)
- In the accounting department
The situation is very similar when we think about the ways in which receipts arrive in the company. Travellers bring them back from their trips. They can be neatly organised in a folder or crumpled up in a trouser pocket. We receive invoices by email as a PDF or download link. Others are posted as a collective invoice and we simply receive the credit card statement. And sometimes we receive invoices by post, although it's not always clear who receives this mail.
As you can see, it may well be worth thinking about this in more detail. Because only when you have really answered this reliably can a successful way of digitising all this be found. After all, it's not just about digitising the receipts. (Then you could simply scan all the receipts and file them in a folder).
It's about digitising the receipts in a LEGALLY compliant, GoBD-compliant manner and organising a structured audit at the same time. And you can achieve this if all processes are also digitised.
Finally, it should be noted that if you want to go paperless, it is mandatory to document the processes. And this also includes clearly describing how and which documents are digitised and by whom. As well as how and when the paper documents are destroyed afterward.
Our customers have a choice here, and it almost always comes down to a combination of methods:
- Recording via the travel expenses app (incl. downloading the receipt content via OCR and checking using a second tool)
- Automated import of all travel expenses paid via company credit cards
- E-mail forwarding of all invoices received by e-mail (incl. downloading of receipt content via OCR and verification using a second tool)
- And if desired, the receipts can of course also be entered manually and then a scan or similar is dragged and dropped into the travel expense report application
Which brings us to the method by which, for example, a personal receipt can be digitised and processed in the travel expense report. But let's take a closer look at this.
Self-prepared, internal receipts
At first glance, it is very simple, because the receipt is a replacement for an invoice or receipt that no longer exists. The original receipt may have been lost, it may no longer be legible at all (which is unfortunately not so rare with certain thermal receipts) or there may never have been a receipt.
Almost all frequent travellers can probably tell you about situations in which it was necessary to pay for something and there was no chance of a receipt.
First of all, in the context of travel expense accounting, it is important that you consider,
- Do we generally accept self-supporting documents or not
- If we accept it, we define restrictions such as
o Who is allowed to do it?
o Are there limits on the amount?
o Are there limits on the number per year?
Of course, travellers are entitled to reimbursement of their expenses on business trips. However, this does not mean that you have to accept personal receipts in every case. At the same time, there is certainly a consensus that it is also advisable, for example from the point of view of employee retention, to reimburse travel expenses even if a receipt has been lost.
As far as the amount is concerned, there are no legal restrictions. At the same time, practical experience has shown that smaller amounts up to around €150 are usually accepted by the tax authorities without any problems. If the sums are larger, it may be advisable to create more detailed documentation of the transaction in addition to your own receipts. Supporting documents, such as bank statements or similar, can of course also be helpful here, if they exist in the case in question.
It is important that a separate document is created for each individual business transaction.
In fact, there are no regulations as to what the separate document should look like. Formally, it could also be completely handwritten. However, we strongly advise against this.
It is best to design your own receipt template for your company to ensure that it contains all the information that is required.
- Payee (preferably with full address)
- Type of expense
- Costs (total price, i.e. gross)
- Reason for the receipt (e.g. loss)
- Date and handwritten signature
If available, proof of the price paid is of course good, as described above. Whether this is a bank statement or, for example, a price list etc. is not of central importance and it is also possible without it.
And this is precisely why our approach starts with Preparation for the digital transformation. Take a look at your current processes and where you want to go. Take a look at the existing travel expense policy with regard to the digitalisation of travel expense accounting. Ask yourself what you actually need, what you can do without and what your specialities are.
In any case, our recommendation is not to focus exclusively on one product (no matter how chic, modern and glitzy the app is). You need the right partner at your side. It's all about services and ensuring that the digital transformation of your travel expense report brings you real benefits. It should give you legal certainty in the back office and reduce stress because you no longer have to chase after receipts, etc. And it should benefit travellers and managers, as they no longer have to spend their free time travelling with a stapler and a Pritt pen or suffering PDF battles.
And anyone who is now afraid that a large, expensive consultancy project will be needed to prepare for this can rest assured. If service providers / consulting firms really know what they are talking about, if they really have expertise from x number of travel expense report digitisation projects, if there really is best practice, then it can neither take long nor cost a lot.
If it is exciting for you to at least get an initial overview of important steps, then please feel free to make an appointment here for an initial free consultation.
In any case, we look forward to your feedback as always.
To make sure you don't miss anything, follow us on LinkedIn or facebook.
