Managing records has come a long way, with digital storage offering an easier and more organised approach to keeping track of important documents like receipts. The idea of scanning and storing your receipts digitally is appealing—it saves space, reduces clutter, and is environmentally friendly. But what about those stacks of paper receipts taking up space in your drawers? Can you safely toss them after digitising?

Here’s what you need to know about the rules and benefits of going paperless, and whether holding onto those hard copies is still necessary. 

What Do the Rules Say?

• Accurate: The digital version should be a true and clear reproduction of the original. Blurry scans or incomplete captures might not hold up if questioned.
• Secure: Your digital storage system must protect the integrity of the record. It’s essential to prevent unauthorised alterations and ensure the information remains unchanged over time.
• Accessible: You must be able to retrieve the record promptly and provide it in an acceptable format (such as a readable PDF) if required during an audit or inquiry.
• Compliant: The digital record must meet the same standards as the original paper document for tax and legal purposes.

For more detailed information, refer to the ATO’s guidelines on digital record keeping for businesses.

How Long Should You Keep Records?

Even when storing receipts digitally, businesses generally need to keep records for at least five years after they are prepared, obtained, or the transaction is completed.

This requirement applies whether records are stored:

• as paper documents
• as scanned or photographed copies
• within cloud-based accounting software

Keeping records organised ensures you can easily access them if the ATO requests supporting documentation.

Why Go Digital?

• Clutter-Free Organisation: Say goodbye to messy piles of receipts and hello to a clean, searchable digital archive.
• Easy Access: Retrieve your records anytime, anywhere, especially useful during tax time.
• Durability: Paper receipts fade, tear, and get misplaced. Digital versions are safe from physical damage.
• Environmental Impact: Reducing paper waste is a small but meaningful step toward sustainability.

Simplify Receipt Management with Hubdoc

Digitising receipts doesn’t have to be a hassle. Tools like Hubdoc make the process seamless and reliable. With Hubdoc, you can:

• Snap and upload receipts instantly from your phone.
• Automatically fetch bills and statements from your accounts.
• Store all records securely in the cloud, ensuring compliance with tax laws.
• Integrate effortlessly with accounting software like Xero or QuickBooks Online.

Hubdoc not only digitises your records but also organises them efficiently. Want to learn more about how Hubdoc can transform your document management? Check out our full blog: Simplify Your Document Management with Hubdoc.

The Bottom Line

For most individuals and businesses, keeping hard copies of receipts is no longer necessary. Digital records, when created and stored correctly, are considered valid and are often more convenient to manage.

By adopting digital tools and maintaining organised records, businesses can simplify their processes while still meeting ATO record keeping requirements. At MKG Partners, we help individuals and businesses streamline their financial systems and stay compliant with their tax obligations. If you are considering moving toward a paperless record keeping system, our team is here to help.