Receipts have a strange way of causing problems. They hide in jacket pockets, disappear into the washing machine, and resurface three weeks later, completely illegible. And then they have to be deciphered and (fingers crossed) entered correctly. But luckily, there’s a smarter way. Learn how receipt scanning works and how it makes expense management both more secure and more efficient.
First and foremost: what is receipt scanning?
Simply put, receipt scanning is a digital feature that interprets the information on a receipt and transfers relevant details to an expense report or travel expense claim. Typically, this includes details such as the date, amount, and sales tax—information that would otherwise have to be entered manually.
All you need to do is take a photo of the receipt with your phone or upload an image or PDF. The system then reads the content and suggests the information needed to create an accurate expense report. Then, simply verify that everything is correct and submit the expense report for review and approval (for example, by your immediate supervisor or the finance department).
The Challenges of Traditional Expense Management—and How Receipt Scanning Solves Them
Traditional receipt management often relies on employees saving physical receipts and recording them afterward. And this is problematic in several ways. First, it takes time. Each receipt must be located, interpreted, entered, and linked to the correct expense category. Second, the risk of errors increases when data is entered manually. A date might be incorrect, the sales tax might be omitted, or the wrong expense code might be selected—to name a few examples.
Last but not least, it’s easy for an expense to get put on the back burner. Instead of recording it right away, it gets pushed aside as something you plan to deal with later. And this matters not only for the person who incurred the expense. Managers, the finance department, and payroll also end up having to chase down, correct, and complete information after the fact.
When receipt management becomes digital and more self-service, something quite important happens: the barrier to actually recording the expense right away becomes much lower—while automated workflows reduce the risk of something getting lost along the way or being recorded incorrectly.
Why receipt scanning is a win-win:
- You save time because the system automatically retrieves all relevant information.
- You reduce the risk of errors because the date, amount, sales tax, and supplier don’t need to be entered manually.
- You get higher-quality and more complete documentation from the start—which in turn means less extra work during review and approval.
- You avoid piles of receipts and lost documentation because the process is digital from the very beginning.
Read more: Guide: How to Simplify Your Company’s Expense Management
From Cumbersome Manual Entry to Seamless Workflows with Flex HRM Travel & Expense
In the Flex HRM Travel & Expense, you can manage your receipts just as easily in the app as on the web. Take a photo of the receipt directly in the app, select an image from your gallery, or upload a PDF. Then the AI agent Flexie takes over and assists you all the way to the finish line.
How it works in a nutshell:
- Flexie scans the receipt and extracts details such as the amount, date, and vendor. All you need to do is review it, make any necessary adjustments, and submit it. In short: attach, check, done!
- Do you also need to keep track of entertainment expenses? Then you can add details such as purpose, participants, and tips directly in the workflow. This is valuable, since those specific details tend to slip your mind rather quickly.
- If you use Flexie in the app, you can also get help finding the correct expense code based on the information on the receipt. For example, a hotel receipt can be linked to lodging, and a restaurant receipt to entertainment expenses. Fewer choices to make yourself = less risk of errors.
- Need to check the status? You can ask Flexie about your registered expenses, what’s pending payment, or if anything needs to be supplemented before it moves on to review.
Do you and your colleagues want to reduce manual hassle and make it easier to record expenses as soon as they occur? Contact us, and we’ll tell you more about how Flex HRM Travel & Expense would work for your specific business.
Frequently Asked Questions
What is receipt scanning?
Receipt scanning is a digital feature that reads information from a receipt and transfers details such as the date, amount, sales tax, and vendor to an expense report or travel expense claim.
What problems does receipt scanning solve?
Receipt scanning lowers the barrier to recording expenses immediately, while the receipt is still close at hand. You avoid lost receipts, reduce the risk of data entry errors, and make it easier to capture the correct information from the start. In short: less manual hassle and a smoother, more secure workflow all the way from entry to review and approval.
Can you throw away the paper receipt after scanning it?
Yes, if the receipt has been digitized correctly. As of July 1, 2024, paper receipts may generally be discarded as soon as the accounting information has been transferred to a digital document, provided that the transfer is secure and that the information is not at risk of being altered or lost. Also make sure that the entire receipt is included—for example, the date, amount, sales tax, and what the purchase is for—and that the digital copy is saved in accordance with applicable archiving requirements.
How does receipt scanning work in Flex HRM?
In Flex HRM, users can take a photo of or upload a receipt in the app or on the web. The AI agent Flexie reads the data, suggests the correct information, and guides you through the expense workflow.
Can you handle entertainment expenses as well?
Of course! When you register entertainment expenses, you can add the purpose, participants, and tips directly in the workflow. This is convenient, since those details are often easily forgotten afterward.
