Invoice scanning is the process of converting paper invoices into electronic invoices by scanning or photographing them.
When you receive a paper invoice from a supplier, you should scan it or photograph it and store it online.
Why invoice scanning is important
You need to safely store your sales documentation. This is used to verify the transactions you record in your general ledger. Every transaction must be verifiable; you need some sort of documentation to prove that the transaction is real.
There are several good reasons to scan your invoices:
- Having a digital archive makes it easier to go back and check earlier transactions, either for auditing purposes or because you’re trying to budget and plan for the future.
- Being able to compare incoming invoices with earlier invoices can help you avoid fraud. If you’re unsure whether an invoice you receive is legit, you can compare it with the previous invoices you’ve received from the same supplier.
- You save space. By storing all your documents in the cloud, you don’t need to have shelves full of folders.
- The documents are safe from fire, water damage or theft.
Once you have securely stored a digital copy of an invoice or receipt, you don’t have to keep the paper copy.
Store your outgoing invoices with invoicing software
It’s also important to keep hold of your outgoing invoices—the invoices you send to your clients.
If you use invoicing software—tools that are made specifically to simplify your invoicing—all your invoices will be stored safely online. You can also send the invoices directly to your clients from the software, rather than downloading a PDF to print.
If you send paper invoices to your clients, not only does it take longer for them to receive the invoice, but they’ll most likely also have to then scan it in order to store it online.
