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, we are referring to the ability to attach your invoices and receipts directly to the recorded expense in your accounting application. Now that the 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 Dext to take a picture of the receipt and make the entry later.
We personally recommend using Dext, and here’s why.
When you take a photo of your receipt through QuickBooks, you must also code and create the entry in QuickBooks. This puts the onus on you. With Dext, you have the flexibility to take the picture of your receipt, email or upload to your Dext account, and leave the entry for someone else. This also allows your staff to take pictures of their receipts to email to Dext. How many times have you or your team lost receipts, to either never find them, find them later disintegrated or faded, or find them after your tax return has been filed?
Are you running out of space for storing paper copies of your information?
In that case, you should know that Dext also acts as your filing system. As your invoices, statements and receipts are pulled into your Dext account and pushed to your QuickBooks Online account, Dext will file them into folders so that you can easily find a receipt or statement at a later point in time.
There are many other features that we love about Dext. To learn more about how this may be a fit for you, reach out to us today.