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Small business owners and solo-preneurs have a unique challenge in tracking business expenses. Many people in this position start out using a spreadsheet or other document to keep track, but that can quickly become cumbersome. Expenses need to be tracked and categorized for easy retrieval at tax time. Thankfully, there is software available to make this process easier. At True Assisting, we use Quickbooks and we suggest using it in conjunction with Shoeboxed for our clients’.
If you’ve looked into accounting software at all, you’ve come across Quickbooks. It’s the biggest name in the industry for good reason. Quickbooks offers different service levels depending on your business needs and can easily scale up as you grow. One of best features is the ability to create different access levels so you can keep personal data separate from what your bookkeeper and accountant see. It does require basic accounting knowledge, so if you’re uncomfortable, consider asking a professional to help you.
In the past, small business owners and entrepreneurs have had files (or shoeboxes) full of receipts backing up the data in their accounting system. If you have unlimited storage space, this might be fine. Chances are, though, that storage is limited, particularly if you work from a home office. Shoeboxed takes the place of the boxes and electronically stores those receipts. Unlike similar programs, Shoeboxed links directly to Quickbooks, eliminating the need to look for duplicates or cross-populate information. If you drive for work, Shoeboxed mobile app includes a GPS function that will automatically track and record your mileage when activated. This is also synced to Quickbooks making it simple to accurately report your mileage on your taxes and receive the appropriate deduction.
By using expense tracking tools all year long, tax season is no longer a nightmare of hours spent scrambling trying to figure out what you can deduct and where your data is. If you’d like help getting your business expense tracking software set up, please reach out. I’m happy to assist you!