Having your own business requires you to wear many hats. While some may be fun (hey, I’m a lawyer AND a graphic designer now!), others not so much (ah man, I’m a lawyer and customer service rep now). For many new entrepreneurs, that means wearing the “bookkeeper and accountant” hat if you’re not yet in a place to outsource that work.
Nevertheless, properly tracking your business expenses makes a huge difference. At the very least, it helps you avoid having to shuffle through a box of receipts or, even worse, pay your CPA to do it for you.
So why should we bother tracking business expenses? Easy! It helps us save on taxes. If we’re self-employed, we use Schedule C to tell the IRS how much revenue our business received, how much we spent on the business, and the net income (or loss) for the year. To clarify, we don’t pay taxes on the revenue our business receives. We only pay on the profit or net income, which is the money we received minus the money we spent. Any ordinary or necessary payments you’ve made to run your business are considered business expenses and are deductible on your Schedule C.
As promised, here are the programs/tools I mention in the video:
Freshbooks (this is an affiliate link and I may get a little commission if you purchase)
Tune into this week’s episode of All Up in Yo’ Business to find out the benefits of each. Be sure to subscribe to our YouTube channel for more All Up In Yo’ Business!
Also, contact us today if you need help with your business.
Want more information on what’s deductible for your business? Check out: Is It Deductible? Business Educational Expenses.