Receipt Capture Workflow

Thermal paper receipts fade to blank within months, and the glovebox-and-shoebox system tends to fall apart exactly when the ATO or your accountant asks for a specific document. Losing a receipt often means losing the deduction, and the GST credit that went with it.

A receipt capture workflow fixes this with a few seconds of effort per document.

Digital copies are fine with the ATO

The ATO accepts electronic copies of paper records, provided the copy is a true and clear reproduction of the original. Once you have that, you generally do not need to keep the paper — the photo or PDF becomes the record. The same retention rule applies as for paper: keep records for five years, and make sure the digital copy stays readable and unaltered for that whole period.

Pick a capture tool

The mainstream options all do the same core job — turning a photo or an emailed invoice into transaction data plus an attached image:

• Hubdoc, included with many Xero subscriptions, and Dext, which suits higher document volumes and multi-entity setups.
• Built-in capture — MYOB and QuickBooks Online both offer receipt capture in their own mobile apps, which avoids adding another subscription.
• Email-in addresses — every capture tool gives you a unique email address; forward supplier e-invoices there and they file themselves.

Make it a habit, not a project

The workflow only works if capture happens at the point of purchase:

• Photograph the receipt before you leave the counter, then discard the paper without guilt.
• Forward emailed invoices to your capture address the moment they arrive, or set a mailbox rule to do it for you.
• Give recurring suppliers your capture email address as the billing contact, so invoices skip your inbox entirely.
• Review the capture inbox weekly and publish everything through to your accounting software.

Attach, then match

The end state to aim for is simple: every transaction in MYOB, Xero or QBO carries its source document as an attachment. When the bank feed line arrives, it matches against a bill that already has the invoice attached. At BAS time, questions like "what was this payment for" answer themselves, and if the ATO ever reviews a claim, the evidence is attached to the transaction rather than sitting in a faded shoebox.

Can I throw out paper receipts once they are scanned?

Generally yes — the ATO accepts a true and clear electronic copy in place of the paper original, as long as the digital copy is kept, readable and unaltered for the full retention period.

Is my bank statement enough evidence on its own?

Usually not — a statement line proves you paid someone, but not what you bought or how much GST was included, so keep the tax invoice as well.

Do small purchases need a full tax invoice?

For purchases of $82.50 or less (GST inclusive) you can generally claim a GST credit with lesser evidence such as a receipt or diary record, but check the current ATO figure before relying on it.