If you can slip each expense into one of those categories, you’ll make things easier for yourself and your accountant at tax time.Īnother benefit to categorizing expenses is that you’ll be able to clearly see where your money goes each month. Categories like transportation, meals, lodging, and business use of your home are standard for professionals claiming business deductions. Your tax preparer can give you a list of categories of IRS-accepted expenses. If you amass hundreds of receipts each month, you may find that software without search capabilities is useless, since you’ll never be able to locate the receipt you need if you’re asked about it at a later date. When searching for a receipt scanning app, be sure to choose a service that will allow you to easily search for the receipts you need, when you need them. Once you’ve saved the receipt, you can then throw the paper version away. There are apps now available that will allow you to scan all of your receipts using your smartphone or tablet’s camera. Over time, this loss adds up to hundreds or thousands of dollars. If your regular practice is to shove receipts into the pockets of your laptop bag throughout the day, you’re probably losing at least a few expenses. Here are 10 tips that can help you improve your expense-tracking efforts to make things easier for your tax preparer. Tracking expenses is one of the trickiest parts of accounting for small business owners. Many professionals find it’s all too easy to get behind on their bookkeeping. However, if you find yourself scrambling at the beginning of each year to put together your books from the previous year, you aren’t alone. For those who track things every day throughout the year, they simply must take that information to their accountants at tax time. Busy professionals work throughout the year, accumulating expenses and tracking income.
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