The present invention is a system comprising image capture device, such as a scanner or digital camera connected to a computer processor that is able to capture and store images, and method of using the same for storing and processing expense receipts. The computer processor analyzes the images of the receipts, converts the images to text, analyzes the data, extracts expense data, and puts the data into an expense report. The end user can review the captured expense data, correct it or add to it. Preferably, the system displays the image of the receipt side-by-side with the captured expense data to make review and editing easier. In a preferred embodiment the image capture device is portable, such as a handheld scanner or digital camera, so that a user can scan receipts while traveling and discard the receipt. Also, in a preferred embodiment, the images are encrypted to prevent tampering by the user or a third party, and thereby preserve the integrity of the receipt image. In one preferred embodiment, receipt images or uploaded via the Internet an intranet, or other network to a remote data storage facility to further protect the images, both from tampering and from loss.