Bratislava, February 20, 2024 – Missing cash register receipts or invoices pose a regular year-end nuisance for many Slovak companies. Discrepancies between actual payments for goods and services and accounting records can lead to unpleasant consequences on multiple levels. Capila highlights a digital solution along with a set of practical measures to help prevent such situations.
The end of the year is often associated with a time of peace and relaxation. However, in practice, one cannot escape the dose of December stress. For accountants and entrepreneurs, this rings doubly true. It’s during this period that they finalize accounting documents for the ending year, including tracking down lost and missing receipts and invoices. In Slovakia, it’s not uncommon for many to find themselves in an unpleasant situation – unable to locate missing receipts and invoices.
“It’s a complex problem that grows along with the number of missing receipts and the complexity of the business. On one hand, when documents are missing, the corresponding items must be accounted for and reported as non-deductible expenses, unnecessarily increasing the taxable base. At the same time, the risk of incomplete accounting increases, which could lead to penalties after a tax office audit. Later, if the company tries to track down the receipts, it must allocate employees to do so, incurring not only time costs but also payroll expenses. These risks can be minimized and potentially completely eliminated with a set of measures, with digital systems and applications playing a significant role. Properly set processes and trained employees also play important roles,” explains Martin Jesenský, CFO at Capila.
Digital Repository Instead of Filing Cabinets
A legislative change has simplified life for companies in this regard by allowing them to transfer their entire agenda into a digital format. Legislation has long allowed for the electronic archiving of all accounting documents. However, the rules governing archiving remain unchanged. Companies still need to ensure the credibility of origin, the integrity of content, and the readability of accounting documents.
“Thanks to digitalization, paper documents no longer need to travel anywhere or take up physical space. Digital tools allow the entire process to be significantly accelerated and administrative burdens minimized, increasing the likelihood that people won’t forget about it. For example, our clients at Capila can use an application to send receipts immediately after purchase, using just a smartphone. The application can convert the photo into a format that meets all legal requirements and is directly linked to accounting, so it’s automatically recorded,” explains Jesenský.
Technologies Work When Corporate Processes are Aligned
New elements of digitalization and automation simplify the sending and archiving of documents. However, it’s important not to forget that they represent a puzzle piece that comes into play at the end of the entire chain.
“In practice, many missing documents are due to insufficient communication, inefficiently set processes for collecting receipts, and sometimes the absence of mechanisms to prevent their loss. In these cases, employees lack strong motivation to provide receipts or sometimes don’t even know they’re supposed to collect them. Therefore, we recommend thoroughly training employees who handle company funds. When receiving a corporate payment card, they should understand why the entire process is important and what their responsibility is,” states Jesenský.
Expert Recommendations
In capable hands, the advent of digital solutions for online submission of cash register receipts is the tip of the iceberg, smoothly integrating into a transparent and efficient document collection process.
“The goal should be well-set internal processes supported by appropriately set technical solutions. Overall, these are relatively simple process changes that often smoothly transition companies from one extreme to another, from hundreds of missing receipts to zero or just a few, which are not so challenging to track down and resolve.”
About the Company
Capila is a Slovak company specializing in accounting and tax services, automated managerial reporting through its own web application, and strategic financial advisory (CFO services). Experienced accountants and tax advisors ensure efficient management of accounting and tax matters. Through the web application, clients monitor their financial data in real-time. Capila also helps clients plan and optimize their financial processes and strategies.
