Research showed that one-in-four small businesses are losing 10,000 each year by simply misplacing receipts while a further 8 percent reckon, they have lost as much as $100,000.
This is the conclusion reached by Slyp and National Australia Bank which recently introduced a new technology whereby NAB customers can access digital receipts from within the NAB app.
The data also revealed that 62 percent of small businesses mislaid paper receipts at tax time, falling back on manual bank transaction comparison, diary checking and even simple memory recall to identify lost receipts.
As it runs out, only half of the businesses surveyed have a proper filing system in place to collect receipts throughout the year.
About 79 percent of small businesses kick off the tax preparation before tax time with 60 percent opting to manage the process internally, rather than outsourcing, the data found.
A solid 42 percent of business owners said that gathering old receipts is the most time-consuming part of the tax process followed by 39 percent who blamed fact-checking.
NAB business banking executive Tania Motton, said paper receipts can add undue stress and complication to tax time. She said 81 percent of small businesses said the availability of digital receipts would help their tax-time process.
“We partnered with Slyp because we understand the impact that automation and digitisation can have on the bottom line of a small business, and we want to give NAB customers the ability to streamline their tax time process by receiving and accessing digital receipts from within the NAB app.”
A disconnect between systems
Slyp’s joint chief executive and co-founder of Slyp, Paul Weingarth said it’s clear that there’s a disconnect between the current manual process and the tools that small businesses are using. “Three-quarters of Australian small businesses say they’d like to change the way that they process paper receipts in the next financial year and 69.6 percent say they’d be more inclined to purchase through a retailer that provided digital receipts.
“We’re working with merchants and banks across the country to drive the switch from paper receipts and to ensure that more small businesses are delivered digitally, smart receipts straight into their banking app.”