How-to guide: Saying goodbye to receipts (mostly)
One of the great things about using Finmo is that it drastically reduces the need to hold onto receipts. This is because you’re able to use data from your actual bank account – AKA your transactions – to record your income and expenses.
Say you regularly buy stationary from an office supplies shop for your job as a freelance writer. With Finmo, you won’t need to collect receipts for these purchases, but can simply tag the transactions as ‘Business’ in our app. Better yet, make a rule for that particular shop so Finmo automates this for you. Of course, if you sometimes buy things for personal use from that shop, you’d need to tag transactions individually rather than creating a ‘one-size-fits-all’ rule.
When to hold onto receipts
Although Finmo significantly reduces the need to hold onto receipts, there are some occasions where you’ll still need to. These include:
1. Buying work and personal items from the same shop
If you bought a mixture of personal and work-related supplies from the same shop in one transaction, you’d need to hold onto the receipt to show which items were and weren’t for work.
2. Making a particularly large purchase
If you’re making an unusually large purchase that you want to claim as a business expense, we’d recommend holding onto the receipt for it just in case HMRC has any questions.