Receet Blog

11 Things You Need to Know About Digital Receipts

Posted by Omar Barkawi on Jul 1, 2020 3:21:49 PM
Omar Barkawi

Receipts are something that almost everyone has to deal with on a regular basis. This is because receipts are necessary to make returns, to verify business expenses, to track budgets, etc. However, despite the fact that most people have to deal with receipts all the time, traditional paper receipts are difficult to keep track of, and tedious to manage.

Thanks to Receet, businesses and individuals no longer have to rely on paper receipts to track their expenses. Instead, all receipts can be tracked digitally! This is a tremendous step up from tracking receipts with physical pieces of paper.

Consumers want digital receipts. Here are the top 11 reasons why consumers want digital receipts and prefer them over traditional paper receipts.


paper receipts

  1. They Never Get Lost!

Because paper receipts are so small, and because they are often thrown in the bottom of a plastic bag and forgotten about, they are far too easy to lose. In fact, in one survey, 28% of respondents said that they throw away or lose nearly all paper receipts that they receive. This is an astonishingly high percentage of people who do not get any benefit whatsoever from paper receipts. It means that roughly one out of every four people in America are not able to claim any business expenses, make any returns of items, or keep track of expenses for their budget when paper receipts are used. This is a major problem!

Unlike paper receipts, digital receipts never get lost. They will stay on your mobile phone, tucked away on an app forever. They can be retrieved and viewed whenever you want. This means that with digital receipts, people can get much more benefit and use compared to paper receipts.

 

receipt taxes

  1. They Make Tax Time Significantly Less Stressful

Anyone who has ever tried to track down all receipts that were used for business expenses during the calendar year knows exactly how stressful it is to try and manage paper receipts. Trying to track down all paper receipts can involve hunting through glove compartments, folders, binders, filing cabinets, and many other places. If even a single significant receipt is lost, it can result in the loss of a substantial tax deduction that would otherwise be available.

Doing taxes is stressful enough by itself without having to try and track down hundreds of receipts. But when you throw receipt hunting into the mix, it can make taxes much more stressful. Consumers are well aware of this fact, and that is why they prefer digital receipts.

With digital receipts, all that a person has to do when they are filling out their taxes is to open the Receet app and look at all of their receipts. They are all neatly stored and easy to access. There is no confusion or stress when trying to find them, and calculating expenses is incredibly easy. People tend to favour anything that can make tax filing easier and digital receipts definitely fall into this category.

 paper receipts

  1. Digital Receipts are Better for the Environment

Paper receipts are made from wood pulp. Wood pulp is generated from the cutting down and processing of trees. In America, every single year approximately 1 billion trees’ worth of paper is thrown away every single year. Paper receipts contribute significantly to the large number of trees that are cut down every year, converted into paper and then discarded.

Because the entire world is facing a greenhouse emissions and global warming crisis, the last thing that we want to be doing as a society is cutting down billions of trees and converting them into paper that gets thrown away and oftentimes ends up in landfills. Digital receipts completely eliminate the need to cut down trees in order to obtain wood pulp to be made into thermal paper which is used for paper receipts. As a result, digital receipts have a tremendously positive benefit on the environment.

It is estimated that every single tree absorbs about 48 pounds of carbon dioxide per year. So, by using 1 billion trees every year for paper, the United States fails to absorb 48 billion pounds of CO2 from the air, which would otherwise be absorbed. Essentially, by using so many trees for paper, we are hurting the earth, speeding up global warming, and preventing ourselves from achieving balance and harmony with our ecosystem and our planet. Consumers want digital receipts because they know that they help to protect the environment and to fight against global warming.

The benefits that digital receipts provide for the environment are compounded by the fact that paper receipts and thermal paper are not recyclable. Many different types of paper can be recycled, which can help to save trees. The thermal paper is not one such type of paper. This makes it even more important for digital receipts to be used to protect the environment.

 digital receipts retail

  1. They Speed Up the Checkout Process

Very few consumers enjoy waiting in long lines at retail check out areas. Part of the reason why check out takes a long time at many retail stores when digital receipts are not used is because a paper receipt must be printed for every single customer. Also, oftentimes, these paper receipts must be signed and verified. This process can take anywhere from fifteen seconds to a few minutes if there is an issue. When you multiply this by the number of customers that have to check out every single day at stores, it can amount to quite a large amount of time.

Digital receipts on the other hand can be processed much faster. When digital receipts are used, customers do not have to wait for physical receipts to be printed and re-printed if there’s an error. Instead, the receipts can simply be scanned with a smartphone. This process is much faster and more efficient. The end result is that wait times in checkout lines are significantly shorter. This provides for a better shopping experience for all consumers and it dramatically reduces consumer stress and frustration, which is good for nearly all businesses.

 

paper receipts

  1. They Reduce Paper and Email Clutter

Another reason why consumers love digital receipts it’s because they reduce paper clutter in wallets, purses, glove compartment’s, centre consoles, offices, desks, counters, backpacks, and other areas. Paper clutter can be extremely annoying and tedious to deal with, especially for people who are highly organised and who hate clutter. They also reduce email clutter for email receipts, which are also annoying to deal with.

Digital receipts do not take up any physical space and exist entirely in smartphones and on clouds. This means that customers who get digital receipts will not have to deal with paper receipts building up in various areas like desks counters etc. Not having paper receipts build up in unwanted physical areas and in email inboxes helps to reduce stress for consumers and makes it easier for them to keep their lives organised. These are great benefits of digital receipts for consumers and it is part of the reason why so many consumers love them.

 

 BPA in Paper Receipts

  1. They Reduce Exposure to BPA

BPA is a harmful chemical that is commonly found in the thermal paper that is used for physical paper receipts. This chemical has unfortunately been proven to cause cancer in lab rats. Generally speaking, it is not wise to repeatedly expose oneself to carcinogens. So, by using digital receipts consumers are able to reduce their exposure to the harmful chemical, BPA. This is something that is very important to a great deal of consumers.

After all, why would consumers want to expose themselves to something that is potentially hazardous to their health when there is a much safer alternative that can easily be used instead? The more consumers that become where of the fact that thermal paper contains BPA, the more consumers want to switch to digital receipt options.

BPA has been associated primarily with causing hormone-related cancers such as breast cancer, prostate cancer, and ovarian cancer. All of these cancers can be life-threatening, and they’re all better to avoid. Limiting exposure to thermal paper and paper receipts is one way to reduce one’s risk of developing a hormone-related cancer.

 digital receipts categorisation

  1. Digital Receipts Can Be Organised by Category

With digital receipt software programs and apps, digital receipts can be easily organised by category with a few clicks. Because of this, consumers can easily see where the bulk of their money is being spent. This provides consumers with an unprecedented level of insight into their expenses. It also prevents them from having to go through mountains of receipts piled in stacks, and organising them one by one into categories.

So, digital receipts essentially provide incredible amounts of financial oversight while saving the consumer time and energy. This is a definite win-win for consumers. Because Digital receipts provide this level of value, they will most likely continue to grow in popularity amongst consumers for many years to come as they have been doing for some time. In fact, there’s a very good chance that they were outright replace paper receipts one day in the near future.

 

 digital receipts taxes

  1. Easy Sharing with Accountants and Tax Professionals

For people who rely on accountants and tax professionals to assist them with their taxes, digital receipts are much easier to deal with than their paper alternatives. This is because unlike paper receipts, digital receipts can be easily sent to accountants and tax professionals with one click. This means that people who use digital receipts are able to send the receipts to their accounts and tax professionals in a matter of seconds.

However, people who use paper receipts have to spend a lot of time collecting them all and then they have to physically send them to their accountant. This process can take hours or even days. It is much easier to work with digital receipts that can be sent over the Internet in just a few moments of time. For anyone who wants to simplify their interactions with their accountants and tax professionals, digital receipts are an outstanding option.

 

 digital receipts

  1. They Can Be Easily Searched By Keyword or By Date

This is another crucial benefit of digital receipts. Being able to easily scan digital receipts by keyword or by date makes it much easier for consumers to find individual receipts that they need to find. For example, say that a businessman takes a few clients out to lunch and he needs to know exactly how much she spent on the business lunch at a certain point. In this case, the businessman can search for the digital receipt by looking up the name of the restaurant or the date that he took the clients out to lunch.

Within a matter of seconds, the businessman will be able to find the receipt that he was looking for. Once he has the receipt, he can easily extract the financial information off of it and use it for whatever purpose he needed it for. Scanning receipts and looking for individual receipts has never been easier thanks to digital receipts and digital receipt software.

 

 digital receipts audit

  1. Digital Receipts Are Better For Audits

Oftentimes, when people are audited by the IRS, the IRS will ask a person to produce a specific receipt that corresponds to a business expense that they claimed on their tax return. With digital receipts, it’s extremely easy to produce these receipts if the IRS comes around and starts asking for receipts for business expenses. All that a person has to do is to go onto their digital receipt app and pull out the particular receipt.

However, if a person was using paper receipts it can be very difficult to track down the individual receipts that the IRS is asking for. If the person fails to produce the paper receipt, and the person could end up owing the IRS more money, even if the business expense was legitimate. This is because individuals have the burden of proof when it comes to IRS audits. Digital receipts make it very easy for people to prove their business expenses and that is another reason why people love them.

The fact that people know that they will be able to more easily deal with the IRS by using digital receipts at a certain level of comfort and security that simply doesn’t exist with paper receipts. So, anyone who wants to be able to better deal with the IRS can start using digital receipts wherever applicable.  

 

 

  1. The Ink Will Never Fade

Unlike with paper receipts, the ink on digital receipts will never fade. If the ink on paper receipts fades, it can create many problems. Essentially, the receipt becomes useless for tax purposes, budgeting purposes, and expense tracking purposes if the ink fades. So, if the IRS decides to audit you and ask for a receipt from two years ago for a large business expense and if the ink has faded on that paper receipt, then you could be out of luck.

In such a circumstance, the IRS would cancel the deduction that was associated with your business expense because you won’t be able to prove that there was an actual business expense. Instead of having to deal with this stressful situation, it is far better off to simply use digital receipts and then store everything on the cloud. In this way, you can pull out any receipt in a matter of seconds that you have stored digitally. This dramatically reduces the chances of you failing an IRS audit and being forced to have to pay more money to the IRS then you should.

Conclusion

Digital receipts are better than physical receipts in almost every single way. They are better for the environment, they are more convenient, they’re better for tax purposes, they are less stressful to deal with etc. Because of all the value that they provide consumers are going to start referring and demanding them more and more in the near future.

This means that retailers are going to have to adapt to changing  consumer preferences. Companies who want to stay on the cutting-edge of technology and who want to stay ahead of their competitors Will have to start offering digital receipts to their customers. This means that it will soon be necessary for many retail stores to start working with a digital receipt company.

Here at Receet, we allow companies to easily offer digital receipts to their customers in a way that completely protects customer data. Additionally, Receet provides an easy way for companies to collect email addresses from consumers that does not annoy the customers or fell invasive to them. This is extremely important because email marketing can be highly profitable source of revenue for many different companies.

So, being able to easily access customer email addresses is another critical benefit of digital receipts for companies. Digital receipts provide an enormous amount of benefits to both customers and to the businesses who offer them. They are literally capable of improving customer experience, helping companies to generate more profits, and helping people to save the world from global warming. Digital receipts are a true blessing for mankind.

If you would like to learn more about how Receet can benefit your company, please feel free to get in touch with us or to sign up for our email list today!

Also, please feel free to share this post with your network on social media to help spread the word about the benefits of digital receipts! 

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Topics: paper receipts, digital receipts, sustainability, e-receipts, receipt tax, digital receipts apps

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