Why is it important to keep receipts?

Why is it important to keep receipts?

Going through a box full of receipts, checking them one by one, and figuring out which ones are worth keeping is a time-consuming and frustrating process for most people. However, it still does not change the fact that some receipts are better to be kept. 

Here are the reasons to justify the importance of keeping them:

  • Claim the warranty
  • Returning or exchanging a malfunctioned item
  • Monitor your expenses 
  • Take care of your taxes
  • Proof of transaction 

-Have the proof of purchase to claim the warranty

Warranty is essential, especially for valuable items such as household appliances, jewelry and electronics. First, let's explain a bit about warranty and guarantee. Warranties are usually free and are offered by the manufacturer and are an assurance of the quality of a product or service, unlike guarantees which are not usually free. They are similar to insurance policies in that you pay a premium to insure yourself against problems with the product or service. So better keep the receipts of these products for as long as you own them.

-In case of returning or exchanging a malfunctioned item

It happened to many of us when we bought a sealed electronic item, and after opening and plugging in, it didn't work. It can be very frustrating to realize that it needs to be returned or exchanged. First thing first, you should have the receipt to ease the returning process.

A confused woman looking at her laptop

-Monitor your expenses 

Nowadays, everyone is so busy with life and work tasks that keeping track of expenses is a real issue. In addition to that, you should pay attention to your credit card statement. You'll need your receipts to compare them to the credit card bill and see if they match or not; you don't want to pay for something you didn't purchase.

You can notice how much money you spend on different items by keeping the receipts. Now you can manage to determine your ever-changing priorities. In this way, you have better control over your budgets and expenses.

A woman and a man looking at long receipts, woman has a calculator

-Take care of your taxes

Filing a tax return is always a complicated process; your documentation must be complete and precise, which is difficult for most people. When you fill out a tax return or claim tax deductions, you need to provide the receipt in most cases. So it is better to keep the receipts until the tax process is finalized. Consult your tax authorities if you want to know which receipts you should keep.

Tax forms

-The best proof of transaction 

Today's deals inevitably require a document for the transaction's validity, and receipts are solid proof of that. Think about when customers want to return or exchange an item; what can prove the purchase better than a receipt. Receipts are beneficial for both customers and sellers:

  • A receipt shows the seller whether the item was purchased from that store and not another
  • A receipt shows the time of purchase, and in what form it was paid for. 
  • The seller would know if the item was bought with a discount or at total price, credit, or cash
  •  The seller can decide whether the product is eligible for an exchange or return. 
  • Receipts are necessary for getting reimbursements from the accounting department exactly when  your company gives you a credit card for some work expenses.
2 people exchanging money and receipts

Do you find keeping the receipts difficult and confusing?

Now you know why it is essential to keep the receipts, but it does not make the process any easier. Maintaining receipts digitally is efficient and more organized. Also, it takes less time to manage. 

The concept of digital receipt is:

  • The receipts you get from online shops 
  • The paper receipts that you digitalize by scanning or taking a picture of them

You might want to know how to change the paper receipts to digital ones; with applications like HouseHood, you can quickly scan and store your receipts as a digital image. In this way, your receipts information is safe, secure and your time is saved.

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