7 Best Receipt Scanning Software for Contractors

Managing receipts is a real pain point in construction. However, instead of stiffing through a pile of receipts, smart contractors are now getting organised & tracking their receipts (& their project expenses) using receipt scanning software.

These receipt tracking apps digitize and organise receipts in real time, save hours of admin time and ensure expense tracking is accurate & up to date. 

In this blog, we explore the importance of receipt scanning software, discuss its benefits, take you through the 7 best receipt scanning apps (with OnTraq leading the way), and provide a guide on choosing which is the best one for your business.

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Importance of Receipt Scanning Software for Contractors

In the construction, every receipt matters. From purchasing materials at a local hardware store to renting equipment, the volume of expenses (receipts) can pile up quickly. Receipt scanning software allows you to centralize all those tiny slips of paper into a secure, digital platform—making it easier to:

• Track and categorize expenses: With the click of a button, receipts can be labeled and sorted under the relevant categories (materials, overheads, etc.).
• Enhance accuracy: Automating data entry reduces the likelihood of human error, saves admin time and helps you track expenses for each project. Not to mention ensure you get all your tax deductions.
• Simplify auditing and compliance: Maintaining a digital record of receipts ensures you’re ready for any kind of tax audit. Easy access to any receipt, anytime helps you be stress free come tax season.
• Focus on project management: By reducing admin work, you can focus on construction expense tracking in real time, leading to better decision-making on project costs and profitability.

Ultimately, good financial management is crucial for running a successful contracting business. Digitizing your receipts using receipt scanning apps, is the first step toward an efficient, streamlined construction expense management system.

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Understanding Receipt Scanning Software and Its Benefits

How Does Receipt Scanning Software Work?

Receipt scanning software uses optical character recognition (OCR) or advanced AI-powered systems to “read” and interpret printed text on receipts. The text is then converted into a digital format that can be categorized, stored, and integrated with accounting platforms such as QuickBooks. This process eliminates the need for manual data entry, reducing errors and improving efficiency (& saving lots of time).

Benefits of Receipt Scanning Software

1. Improved Organization
   Every contractor can relate to dealing with a stack of receipts, and in fact, often losing receipts. By storing these documents digitally, you now have a secure backup. You can use the software to search & find any receipt anytime, by the receipt date, vendor or expense category.
   
   
2. Real-Time Expense Tracking
   These softwares instantly share this data with your accounting software, making it easy to get real time visibility over job costs, and helping avoid over spending & to stay within budget. This also reduces manual bookkeeping work.
   
   
3. Time Savings and Reduced Admin Work
   Instead of spending hours on data entry, the scanning software reads receipts and automatically does it for you - often in seconds. This frees up valuable time to focus on project management, client communication, or any other tasks that actually grow your business.
   
   
4. Enhanced Collaboration
   Whether it's your vendors/ subcontractors or your bookkeeping team, receipt scanning software supports multi user collaboration. This way everyone can upload and access receipts, making things transparent and can communicate easily.

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7 Best Receipt Scanner Apps for Contractors

Choosing the right construction receipt scanner can be the difference between efficiently managing your expenses or feeling overwhelmed by paperwork. 

Here are 7 receipt scanning softwares that can help contractors streamline their admin work, maintain accurate records & track construction expenses easily.

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1. OnTraq (Top Recommendation)

OnTraq, is receipt scanning software that specifically caters to the needs of construction businesses. It is perfect for general and trade contractors who need a simple, easy yet highly efficient solution that uses AI to manage their receipts & track their job costs. Its user-friendly interface makes it easy to get started—even for those not particularly tech-savvy. So this ensures everyone from the field team to the admin office, find it easy to use and upload receipts & track expenses. 

Key Features

• AI-Powered Scanning: Using AI, OnTraq accurately extracts data from receipts such as vendor names, amounts, and dates without manual oversight.
• Seamless Integrations: The software syncs this data with popular accounting and project management platforms, allowing you to keep your financial data up to date. 
• Cloud-Based Access: You can scan receipts from anywhere via mobile, laptop, or tablet.
• Detailed Reporting: Generate monthly or quarterly expense reports broken down by category, vendor, or job site.

Why OnTraq Stands Out

• Accuracy: The in built AI drastically minimizes errors often caused by manual entry.
• User-Friendliness: The intuitive & simple dashboard and mobile app make it accessible for contractors who may not have any formal software or accounting training.
• Integration Capabilities: Effortlessly connect to your existing tools—like QuickBooks or project management software—to keep everything in sync.
• Cost Effective: The basic plan which is a great for most businesses is free.

2. QuickBooks Online

QuickBooks Online is very popular, but is not designed to be construction specific. Similar to Ontraq, you can take pictures of your receipts using the mobile app, which then automatically enters data in your expense ledger.

Key Features

• Auto-categorization of expenses based on vendor rules
• Real-time syncing across devices.
• Seamless integration with the broader QuickBooks accounting ecosystem.

3. FreshBooks

Known for being a user-friendly accounting platform, FreshBooks offers a reliable receipt scanning feature that caters particularly well to freelancers and small businesses.
Key Features

• Quick capture through a mobile device.
• Automatic expense categorization.
• Simple, intuitive interface suitable for non-accountants.

4. Expensify

Expensify is designed to streamline expense reporting. It is more popular among traveling professionals, contractors can also benefit from its OCR technology and automated report generation.

Key Features

• “SmartScan” OCR for fast, accurate data entry.
• Mileage tracking and travel expense management.
• Direct export to major accounting platforms.

5. Shoeboxed

Shoeboxed (just like the name suggests!) aims to eliminate the traditional shoebox full of paper receipts. You can physically mail your receipts for scanning or use the app to capture them

Key Features

• Mail-in service for bulk scanning (ideal for a backlog of old receipts).
• Straightforward app interface for on-the-go scanning.
• Automated expense categorization and tax-time reports.

6. Bench Accounting

Bench is primarily an online bookkeeping service that also offers receipt scanning capabilities. Their team manages the data once you upload the receipts, making it useful for contractors who prefer to outsource their bookkeeping.

Key Features

• Dedicated bookkeeping support.
• Direct chat with assigned bookkeepers.
• Comprehensive monthly financial statements.

7. Wave Receipts

Wave offers free accounting software for small businesses, plus an integrated receipt scanning feature. While it may have fewer bells and whistles compared to paid solutions, it’s a viable option for cost-conscious contractors.

Key Features

• Free receipt scanning tool with the Wave mobile app.
• Unlimited receipt uploads.

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How to Choose the Best Receipt Scanning Software

Selecting the right construction expense tracking app depends on your specific business needs, budget, and the tools you’re already using. Here are some key considerations: 

1. Ease of Use
   
   • For construction, where crews and project managers need to upload receipts, ease of use is the most important consideration. If any app has a learning curve, your team is unlikely to use it, and the entire purpose of having a receipt scanning app is lost.
     
     
2. Budget
   
   • Determine how much you’re willing to spend a year on a receipt scanning solution. Free options like Wave can be attractive, but paid solutions often come with better features, are more suited to construction and have dedicated customer support.
     
     
3. Integration Capabilities
   
   • If you’re already using accounting software like QuickBooks or FreshBooks, ensure the scanner seamlessly integrates with these platforms. Integration reduces double data entry (saving you hours of bookkeeping time) and ensures you have a one view of your financial health.
     
     
4. Scalability
   
   • If you anticipate growth—taking on more projects, hiring additional team members, or expanding your service offerings—choose a platform that can work well with multiple users. This ensures you don’t have to switch tools once your business grows.
     
     
5. Security and Compliance
   
   • Financial data is highly sensitive. Make sure the software you choose employs industry-standard encryption for data storage and transfers. 

Conclusion

In construction, receipt scanning software isn’t just a convenience—it’s an important investment for your business’s financial health. By automating manual data entry, centralizing expense management, and ensuring accuracy, you can save hours of admin time, and focus where it matters the most - managing your job sites. With AI-driven solutions like OnTraq, the benefits are clear: less paperwork, improved accuracy, and a well-organized system that keeps you on top of your finances.

Ready to Streamline Your Expenses?
Check out OnTraq’s AI-powered receipt scanner for effortless organization, unmatched accuracy, and seamless integration into QuickBooks. Visit OnTraq.ai and schedule a demo today to see how you can simplify your construction expense management. 

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Frequently Asked Questions

What is the easiest way to digitize receipts?

The easiest way is to use a dedicated receipt scanning / construction receipt scanner software. Simply open the app, take a photo of your receipt, and let the software automatically extract relevant data like vendor name, date, and amount.

Is the OnTraq receipt scanner free?

OnTraq has a free tier. It’s great to get started and for more advanced features, such as budgeting, there are affordable paid plans. Visit OnTraq.ai to get started with ease.

Can I throw away receipts after scanning?

Generally, digital copies are acceptable for most tax and legal requirements in the United States. However, it is best to double-check IRS guidelines or consult your CPA. Many contractors choose to keep physical copies for a short period before discarding them, as long as the digital records are eligible and secure.

What is the best app for keeping track of receipts?

The “best” app depends on your priorities. If ease of use and affordability are important, the best option for contractors is OnTraq. Its built-in AI makes storing receipts, and tracking expenses easy, while automatically sending this data to QuickBooks.

What is the best way to scan long receipts?

Many apps have a multi-photo feature or allow you to “stitch” images together for long receipts (like those from a hardware store). You can also fold the receipt and capture it in segments as long as the scanner’s OCR can recognize all the details.

What is the best way to keep receipts for a construction business?

Digitizing them is the most efficient & smart way. We recommend you use a construction expense tracker like OnTraq or QuickBooks, which lets you take photos or forward email receipts. Store them in the cloud, categorize them by project or expense type, and maintain backups to ensure safe, and accessible records anytime.