Lifestyle

How do you categorize receipts?

In this article, we’ll explore a simple digital decluttering strategy for keeping and organizing your receipts. Let’s get organized!

As a homeowner, it's easy to let your receipts pile up in a random heap on your counter or desk. However, if you're like most people, you probably need to keep track of at least some of them for warranty, expense tracking or tax purposes. The good news is that it's easy to create a digital system that works for you.

How To Digitally Declutter Your Receipts

Using a free app like Homer, you can scan, upload, or send your receipts digitally with a single tap.

Here are five starting steps to digitally declutter receipts using your phone:

  1. Gather all the receipts you can find in your home. (If you’re looking to structure your existing digital receipts, you can skip steps one, two, and three.)
  2. Separate them into two categories. Distinguish between "receipt clutter", meaning receipts that are no longer relevant (such as very old receipts), and "relevant receipts" that you need to keep and organize.
  3. Toss the receipt clutter. (Doesn't that feel great?!)
  4. Use Homer to scan and categorize your receipts (You have several categories to choose from, like purchase, utilities, services, construction, maintenance and so on).
  5. Make it a habit to store your receipts in the app (not in a messy pile on your desk). This might sound obvious, but a habit is something you stick to.

When scanned in Homer, the app detects and understands the text in your receipt in an instant. That way, a single tap on each word on the screen saves that text. It can also help you upload your old digital receipts and structure them in an effective way. Do you need to email your receipt to somebody? No problem! Homer’s got you covered.

The Benefits Of Storing And Categorizing Your Receipts Digitally

Keeping and categorizing receipts digitally can help you keep track of your spending away from home, without worrying about losing important information. Spend less time running around searching for physical receipts; spend more time organizing.

You can also share your receipts (in emails or as screenshots) with your loved ones, without having to hand them the physical copy.

It also helps you clean up your living space, by eliminating the need for storing receipts in folders or envelopes (or in a messy pile on your desk).

Many of us are in the dark when it comes to our finances. By establishing and maintaining a concrete overview of your spending, you could actually save money month by month.

“How?” I hear you say. Let’s dig into the specifics…

As I previously mentioned in the five-step method to digital decluttering, there are a few different ways to categorize your receipts. The most common is by type of purchase: construction, renovation, or maintenance or even multiple categories. Homer lets you do this.

An image showing a scanned and categorzied receipt with place of purchase, purchase amount, date and categories.
Your receipt will be properly labeled and categorized in Homer

This system is simple and easy to use, and it allows you to see where your money is going each month. How much are you really spending on maintenance each month? How about utilities?

You’ll Be Ready When The Taxman Comes Knocking

It's tax time! The IRS (or the equivalent in your country) wants to see your receipts. This can feel like a daunting task.

However, if you follow the steps outlined above to keep your receipts organized and structured digitally, you won’t have to worry about a thing.

To conclude, categorizing your receipts with an app like Homer is a great way to keep track of your spending and make sure that you're staying within your monthly budget.

Follow the process of gathering, separating, and digitally systematizing your receipts to gain control over your spending and make paying taxes a breeze.

P.S. Are you curious about Homer? It’s a FREE app that lets you save and organize things like receipts. You can even find those elusive manuals for your home appliances with a single tap.Isn’t that awesome?

Click here now to learn more and get started.