Meet Queenie Peng and Ian Heraty, the founders making receipt management less of a chore with their company, Receipt-AI.com.
They spotted a common pain point – the hassle of tracking expenses, especially for busy teams on the move – and built a clever solution using AI and simple SMS texting.
As of late 2024, their approach is pulling in $1,500 a month, proving that sometimes the simplest interface is the most effective.
- Finding the "Aha!" Moment
- What Exactly is Receipt-AI?
- Building the Beast (MVP Style)
- Launching and Getting Noticed
- Growth Strategy: Give Value First
- Key Lessons Learned on the Journey
Finding the "Aha!" Moment
The idea for Receipt-AI wasn't just a lucky guess; it grew from valuable lessons and a systematic approach.
Before Receipt-AI, Queenie and Ian ran Popping.live, a food truck booking website.
While it connected over 100 organizations with food trucks in Chicago, they ultimately learned a tough lesson: even with hard work, a business might not be profitable if the core idea isn't quite right.
This experience solidified the belief that choosing the right problem to solve is paramount.
They developed a habit of keeping an "idea book," capturing every concept that came to mind. To stay objective, they rated each idea on a simple 1-5 scale based on: how big the potential market was, their personal fit as founders for that market, and just how painful the problem was for potential customers.
The idea for Receipt-AI also resonated deeply because it stemmed from their own frustrations as founders navigating the confusing world of bookkeeping and taxes – the steep learning curve and endless tutorials felt like a problem worth solving.
The real validation came early. Before even finishing the product, they set up a basic landing page announcing Receipt-AI and offered only an annual subscription.
When a customer signed up almost immediately (shout out to Igor!), it was a clear sign they were onto something real. It confirmed the problem was significant, their proposed solution hit the mark, and people were willing to pay for it.
What Exactly is Receipt-AI?
So, what makes Receipt-AI stand out?
It’s all about effortless expense management, primarily through a simple SMS text message. There's no need to download another app; users just snap a photo of their receipt and text it.
From there, Receipt-AI's system takes over.
- AI Data Extraction: It pulls out the important details like vendor, date, and amount.
- Smart Organization: Files get renamed logically, and expenses are automatically categorized based on the user's own accounting setup (in Xero or QuickBooks).
- Seamless Syncing: All the processed info and the receipt image land directly in the user's Xero or QuickBooks Online account.
- Easy Reconciliation: This makes reconciling accounts much faster, often just a one-click process within the accounting software.
- Adding Context: Users can even add a quick note in their text message, like "Lunch with Jason re Q3 project," making it easy to remember details later.
Building the Beast (MVP Style)
Being developers themselves gave Queenie and Ian a big advantage when building the first version (Minimum Viable Product).
They focused squarely on the core feature – the SMS upload – because simplicity was key. They handled all the coding, keeping initial costs low, mainly covering server fees, necessary third-party services (like SMS and AI tools), and website hosting.
They used reliable tech like Ruby on Rails and integrated with essential platforms like Xero and QuickBooks.
From day one, they chose a subscription model, believing it aligned best with the ongoing value they provided. Importantly, they bootstrapped the entire operation, funding it themselves.
They feel strongly that seeking early investment can often distract SaaS startups from the crucial task of building something customers truly love. It took them about three months to get the first version launched.
While their skills helped speed things up, they admit it was still challenging, filled with the usual unexpected bugs and hurdles that come with any software development project. Seeing their idea take shape, however, made it all worthwhile.
Launching and Getting Noticed
Getting the word out about Receipt-AI wasn't a one-off event but an ongoing effort.
They announced the launch across various platforms like Product Hunt, LinkedIn, X (formerly Twitter), and Reddit, understanding that consistent repetition is needed for a new name to stick.
The initial feedback was really positive; people seemed genuinely excited about a solution to the headache of expense tracking.
Valuable early comments helped them refine the product. One user, Noteng, perfectly captured the value proposition: "Making expense reports is PITA... With Receipt-AI, I can just text all my receipts while on a trip and that is really helpful.”
That first crucial sale came directly from their waitlist, validating their bold move of initially offering only an annual plan – a clear sign that users saw significant long-term value.
Growth Strategy: Give Value First
Queenie and Ian's approach to growth is simple yet powerful: provide value first.
Whenever they post online, whether on LinkedIn, X, or Reddit, the goal is to share something genuinely useful for their audience – often founders, freelancers, or small teams dealing with expenses.
They believe that by consistently offering helpful insights and solutions for free, they build trust and goodwill.
This strategy, inspired by leaders like Alex Hormozi, aims to make people want to become customers because they already recognize the value being provided.
Key Lessons Learned on the Journey
Like most startup journeys, building Receipt-AI has been packed with learning. Queenie and Ian found themselves wearing many hats – figuring out company registration, chasing product-market fit, handling sales during the day, and coding at night.
One of the biggest takeaways was the power of solving your own problems. Because they personally felt the pain of confusing bookkeeping, they were better equipped to design a solution.
They also learned the importance of relentless learning.
As founders of a lean operation, they had to quickly become generalists, picking up skills in sales, marketing, and finance because there was no one else to do it. Finally, they emphasize the power of focus.
Instead of trying to solve every business problem, they concentrated on doing one thing exceptionally well: simplifying receipt management for busy people via SMS.
They learned that tackling the steepest learning curves, like understanding accounting intricacies, often leads directly to the biggest breakthroughs and best ideas – Receipt-AI itself being a prime example.
Working often from their "offices" in various coffee shops, Queenie and Ian continue to refine Receipt-AI, focused on easing a common business frustration, one text message at a time.
