Easy paper trail in case of an audit - If for some reason, your business needs to be audited, you will be ready with all the financial documents required. Also, by being aware of your business spending, you can estimate quarterly taxes so that they never catch you unprepared. Consequently, you can take action to minimize the expenses and increase your revenue. Easy financial planning - An expense tracker will help pinpoint how your business income is being used up.Easily meet tax requirements - Expense tracker apps ensures that you have all the necessary documents to calculate your tax amount without overpaying or underpaying.3 Reasons Why You Need A Business Expense Tracker App The best part is you don’t have to worry about misplacing the receipt. Also, business expense tracker apps can scan your bank/credit card records to discover tax receipts. With a business expense tracker app, you only have to take a picture of the receipt and the app will automatically log it as an expense. Transport, meals, drinks, accommodation, just to name a few. The last thing anybody wants after a long day of trying to win clients and close new deals is to sit down and track expenses. This includes money received, money spent, and the purpose of the transaction.Īny busy business or independent contractor makes hundreds of transactions every month and keeping up with them manually is a time-consuming process not to mention error-prone. What is an Expense tracker?Īn expense tracker is a dedicated software that integrates with your business credit cards and bank account to track every financial transaction that you make. Our users typically save $5,600 from their tax bill. Our application could scan your bank/credit card statements to discover potential tax write-offs and maximize your tax savings. Note: If you want to use a top rated expense tracker for small business owners, try Bonsai Tax. The answer is to use a business expense tracker app for your small business. How do you ensure you have all the required documents to not only file your tax on time but also increase your business revenue by claiming write-offs? Wondering why a business would fail to file their taxes? Lack of all the relevant documents, especially financial records, required to complete the process.Īnd now to the million-dollar/thousand-dollar question. The main reason for this is the failure to file taxes or pay payroll taxes. Here is another fun fact, every year the Internal Revenue Service (IRS) imposes millions of dollars in penalties on small businesses and independent contractors. However, this will be hard to claim unless you are properly tracking your mileage and can distinguish between miles covered doing personal activities and miles incurred on business trips. Wondering how? It’s because they lack the proper paper trail required to claim a write-off when filling out the 1099 form.įor example, if you use your personal vehicle for business activities you are entitled to a tax deduction of 57.5 cents for every business mile driven. Here is a fun fact, every year small businesses and freelancers end up losing thousands of dollars because they overpaid their taxes.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |