Receipts, by nature, can be super annoying. They bulge out your wallet, they fade (thanks to modern printing on weird paper) and they can easily become scrunched up and lost.
Shonagh Walker chatted to Gerry Incollingo, managing director of LCI Partners on the importance of keeping our receipts and how to best do so!
Track Your Spending
This point may sound obvious but it’s an important one. Tracking your spending is the one way to make sure that you are spending less than you earn. This positive cashflow is going to keep you out of debt and allow you to spend money on things that matter to you.
For Sake Of Warranty
Have you ever had something break on you before it’s even through the front door? Many stores will only accept paper receipts when it comes to returning a product still under warranty. Even if you are not an avid receipt keeper (yet), consider keeping all receipts for purchases over $50 and make use of product return policies if the situation calls for it.
The Australian Taxation Office (ATO) allows all Aussies to claim deductions for some expenses. Most of these are to do with work, such as self-education expenses or the bill for a work phone. These expenses can only be deducted from your tax if your employer has not already covered them and if you have kept all the receipts. The ATO also allows for working from home expenses to be claimed each tax year. This includes cleaning expenses, heating, cooling, and lighting expenses, phone and internet bills and computer consumables and stationery, if the you keep your receipts.
If there are business related expenses in your job, a receipt is proof of purchase. Keep receipts to keep track of your spending and get reimbursed for work related expenses.
Check your credit card statements against your receipts
Checking your credit card statements gives you a true picture of how much you are spending. It allows you to check that you have not been charged for something you did not buy. Unfortunately, cybercrime is rife. IT Brief Australia reported a 400% increase in cybercrime last year, with some experts predicting rates will continue to increase. Compare your receipts with your credit card statements each month for peace of mind and always report suspicious activity to your bank.
As we know all too well, receipts can fade easily, and given we need to hold on to them for quite a few years, this is far from ideal. The best way to track them and store them is with one of the many apps available that are ATO approved, such as XERO or the ATO app My Deductions. These apps also make things easier when tax time arrives, as they can feed directly into your ATO account, taking the headache out of filing your tax return!
All About LCI
LCI Partners are here to help when it comes to finances. Experts in accounting, advisory, financial planning, insurance, legal, lending, and property since 1989, they are your one-stop-shop for all things money – even helping with organising your receipts.