One of our clients’ favourite features of online bookkeeping is the ability to audit proof their records. You have heard us mention this before, but likely are wondering what this means.
There are a couple of ways in which you can set-up your online bookkeeping system to audit proof.
When we talk about audit proofing what we are referring to is the ability to attach you invoices and receipts directly to the recorded expense in your accounting application. Now that CRA is accepting its desk audits/reviews through its online portal, this is a great feature to have. When you are asked to provide support for an account or for HST purposes for example, you can go directly into the entry and the pdf you need will be right there.
How do you get the pdf into your file? There are a few different ways. You can manually upload the pdf to the entry from your computer, you can use the QuickBooks app on your phone to take a picture of the receipt at the time of entry or you can use an application such as Hubdoc to take a picture or the receipt and make the entry later.
We personally recommend using Hubdoc and here’s why.
When you take a photo of your receipt through QuickBooks, you are also responsible to code and create the entry in QuickBooks. This puts the entire onus on you. With Hubdoc, you have the flexibility to take the picture of your receipt, email or upload to your Hubdoc account and leave the entry for someone else. This then allows for the flexibility for your staff to also take pictures of their receipts and email them to Hubdoc. How many times do you or your staff lose receipts and never find them, find them later disintegrated or faded, or after your tax return has been filed?
Another feature that we like about Hubdoc is the ability to auto fetch your documents. For your bank statements, credit card statements, PayPal, hydro, telephone bills, etc. you can set-up your Hubdoc account to retrieve these for you. How often do you receive an email or phone call from your bookkeeper or accountant looking for a missing statement? Wouldn’t it be nice if it was just there and one less thing you needed to think about?
Are you running out of space for storing your paper copies of your information? In that case, you should know that Hubdoc also acts as your filing system. As your invoices, statements and receipts are pulled into your Hubdoc account and pushed to your QuickBooks Online account, Hubdoc will file them into folders so that you can easily find a receipt/statement at a later point in time.
Do you have receipts that are for a specific project or job? You can add tags to these so that they are all grouped together. Then when it comes time to invoice, you can search by the tag and ensure that you have charged the customer for the billable/reimbursable expenses.
There are many other features that we love about Hubdoc. To learn more about how this may be a fit for you, reach out to us today.