Claudia AmandFor small business owners who are still in the early stages of their company, their role as sole proprietor usually means they have to manage all business expenses, tracking every penny that’s coming in and going out. For Kyle Vitense, an independent insurance agent for State Farm, keeping up with all those business expenses means going digital – not only to save valuable time, but also so to reduce the stress of keeping accurate tax records.
“When I was looking to track my expenses, I knew I wanted to use technology and track everything digitally so that I didn’t have to deal with paperwork,” said Vitense, who adds that between him and his four employees, there are plenty of purchases that need to be recorded every month.
“Whether I’m buying something for the office or I’m on a business trip or at lunch with a client, it’s important that I can quickly capture all of my expenses in one location,” he adds. “I use an iPhone app to take photos of my receipts and store them online.”
Vitense says that after taking pictures of his receipts, he later uses online data extracted from the receipts to maximize his tax deductions and safeguard himself in case of an audit. He also uses tools that digitally store physical copies of his receipts. “Most of my purchases are on a credit card, but if I get audited, I need the actual receipts.” By storing photos of receipts, Vitense eliminates the paranoia of not having those receipts on hand if he is ever to get audited.
In fact, the insurance industry is no stranger to audits. Vitense notes that insurance agents have been getting audited frequently, giving him an even stronger case to keep all of his receipts organized online in case the IRS comes calling. As the sole proprietor of his firm, he is also responsible for preparing all of his business’ paperwork for his accountant when it’s time to file taxes. “I’m really confident now that in case I do get audited, I have everything that I need,” Vitense says.
Vitense, like other successful small business owners and insurance agents, delegates as much as he can and finds software solutions to help handle administrative tasks. In an industry that is typically slow to adapt, technology is finally starting to change the game for insurance agents taking charge of their business.
“[Technology] will be the biggest thing going forward and will drive changes in the marketplace,” said Susanna Gotsch, lead analyst for CCC Information Services, a leading claims information company, in a recent interview with PropertyCasuality360.
By adopting new technology like digital expense management and receipt tracking, business owners can focus on attracting more clients and growing their business. As Vitense put it, the more he can get off his plate, the better he can focus on what’s important.
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