Automation is a relentless pursuit. It forces us to reinvent ourselves periodically, moving on to more valuable work for our clients all the time. At Primetrics, this is part of our ethos. We are reviewing the next generation of automation tools in accounting to help lay the foundation for leveraging said tools for our customers. How are we doing so?
Through strategic planning, we are revamping our policy around collecting receipts to better prepare us for this new accounting era. Right now, we retain receipts over $75 and all receipts for any lodging. Over the next few months, we will be increasing the receipt threshold to the IRS capital asset safe harbor of $2,500. Per IRS Publication 535, a business purpose is still needed for each deduction, but we will rely on bank and credit card statements to substantiate deductible business expenses. Therefore, keeping these records (not just on the bank website) will become a critical document to retain. This change will allow for:
next-level advanced automation
faster real-time reporting,
a shorter close process.
Now the real question is, what should you do with this information?
Let's begin by acknowledging there are NOT enough hours in the day to accomplish every task. If there was, you'd see a line of people from here to the Oregon coast wanting to know the secret. In actuality, we are limited because of the obligations we are committed to whether it be a two-hour lunch with a client, running payroll, a three-hour school recital for the kids, or dinner with your management team. Those precious hours add up fast, leaving minimal time to complete daily tasks. Ask yourself, do you constantly feel crunched on time? Why not ease some of that stress by automating some of the admin tasks you encounter daily?
Your accounting team will be reaching out regarding this change as it is implemented at the firm. We will also be adding this language to our engagement letters as they come up for renewal. Technology is changing fast and we are along with it.