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I'm looking at changing jobs and will be required to basically be a contracted employee. I'll need to track all of my business expenses and mileage. Right now I've got an extremely basic spread sheet in Excel. I'm sure the most common recommendation will be Quicken Quickbooks. What do you guys use to track business expenses?
Save all receipts, report all expenses as expenses.
Too hard?
You could get some crayons and just write everything down on a sheet of paper.
I save all receipts, and also scan them into a digital file. I print it out onto copypaper and write down everything about the expense. Receipts tend to fade within a year; I don't know why they use such cheap ink.
I use an Excel spreadsheet, but I also just bring all receipts to my accountant along with the spreadsheet, in case there are questions.
Don't forget to keep a separate sheet for donations. A dollar here, a dollar there...it all adds up.
Excel spreadsheet and scan receipts or print to pdf.
When using my own car small notebook for milage.
Probably do that with a smartphone app or notepad these days.
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Leave the house and return. All receipts in between are business expenses. More detail?
I use CamScanner (Android App). I still try and keep track of the receipts, but I suck at paper.
Previously I used a 6x9 manilla envelope for each month. At the end of the month, the envelope in my laptop bag was replaced by another and the month of receipts was filed for tax season.
CamScanner is way better. PDF of all receipts with just a picture.
For mileage, I use a calendar. My church always hands out nice-ish leather calendars for the year. Start and end mileage for the work day, start and stop time, and a brief note about the work completed.
Trust me when I say that justification of anything you write off can be crucially important.
Have can scanner and have mileage notebook. Think I'll switch to monthly tabs on excel and monthly folders with receipt scans. Great info guys and gals. Keep it coming. I'm going to ask my accountant for more ideas tomorrow.
Quote:
Originally Posted by Ah Pook
See the above post. EVERY CALL you make IS business related, so the cell ph is now a business expense. Can you get the billing changed over to the business name? Same for the computer / home internet service. Figure a percentage of shoes & clothing are now "Work Uniforms"Quote:
Originally Posted by Irving
It's been years since i had a business that warranted itemization. Can one still deduct meals? If so figure X amount of dining out are business related. Same for wear and tear, maintenance on vehicle. You have a room dedicated to act as your office?
Again it's been years so i'm not sure what 1 can deduct.
Was thinking about the home Internet. I'd probably lose money having business pay for phone though. I'm interested in what designates a business lunch though. I'll mostly be very busy or very slow, so I anticipate a lot of fast food when busy.
Are you going to be a independent adjuster?
This is good info I am going to be 1099d this year and have spent a bunch tooling up.... How does one go about itemizing Craigslist purchases?
No sir, I'll tell you after I get hired though. Talked to my accountant today and he said the easiest thing to do is just get a business credit card all your spending is easy to produce because it will just be your credit card statements.Quote:
Originally Posted by Snowman78
I have the same question about Craigslist purchases though, as that was where my first purchase came from. Paid cash, no receipt, and you bet I recorded the mileage.
Buy a receipt packet. When you buy something ask them if they'd do you the favor. For tax purposes only, they can scribble their name. I would also do aprint out of the item in question. This shows it was a legit buy, not something you had a neighbor write up for you. BECAUSE that would be illegal. And we all know no one ever did anything like that, ever!Quote:
Originally Posted by DFBrews
When my wife's friends come visit from California they always buy us dinner and expense it out. They run a finance business that specializes in small business loans for pot shops. I always found it amusing when they made notes on the receipts saying the wife and I were potential clients. Lol.Quote:
Originally Posted by Irving
The credit card is a great idea. That's how I do my expenses for my job. Everything goes on one card. You will want to keep the paper copies of the receipts as well I would imagine. Credit card statements are fine and dandy until the .gov audits you and asks to see itemized copies of the receipts.Quote:
Originally Posted by Irving
Mileage is my single biggest deduction, I average 150 to 200 miles a day. I keep a daily schedule of appointments on Outlook for every location I go to from the time leave the house until I get back. This is also your schedule for the day. If you remember to reset your car trip meter each morning just add the mileage to your calendar at the end of each day. You will have to decide if you are going to take the standard mileage deduction or itemize actual expenses. If you forget to get your odometer mileage you can input your entire schedule with directions on Google Maps and it will give you mileage, you can adjust your route as necessary. I have verified with the IRS that a calendar listing locations and your total miles driven that day is an acceptable record of mileage. I print my daily calendars and put them in a loose leaf binder for a hard copy in the event of a computer crash.
You can use home office space as a deduction but I avoid it myself. Something about depreciation and percentage of personal vs. business use, just too confusing for the little advantage. I have been told that since you are allowed to eat you can deduct any meal you eat away from home. I don't because I pack a lunch each day. Don't forget to keep track of toll expenses and job training. I have two cell phones so one is entirely a business expense.
Just keep track of everything you do for a while. After time you will begin to get a feel for what is a real expense and what is just nickels and dimes and not worth tracking or the hassle.
Good thread can anyone recommend an accountant?
The accountant I've been referring to is my dad. I think he just does taxes though.
Thank you Big Ed. Helpful post, as mileage is going to be my largest write off as well.
I use McGraw and McGraw in Westminster. They do my book keeping and accounting. The book keeper has access to my quick books online and sends me an email on how much my sales taxes are. I give them an envelope and statements for my cc's and they do my chart of accounts. Very reasonable for the time it saves me. Pm or text me if you need more details.
Sign up for EFTPS with the IRS to pay quarterly taxes. This will help stay ahead and not receive a 30,000 dollar bill in April.