It happens the same time every year, we know it is coming, yet as tax day approaches, business owners all over the country scramble to get their tax documents in order.
Receipts, mileage tracking, donations, business expense documentation- there is a lot for busy owners and entrepreneurs to keep track of.
Imagine having a much calmer tax time- one where you had all of your tax documents in order and were able to easily and effortlessly prepare your taxes.
This reality is much more attainable than you might think. In today’s technology driven world, there is an app for just about anything you can think of. So, of course there are many business apps geared toward making receipt organization of business expenses easier.
Gone are the days where business owners collect paper receipts in a shoebox and deliver them to their accountant’s office for use in preparing their business tax returns. Most people now rely on the help of apps to keep the paper receipts at bay.
Another great resource is something 99% of us have with us at all times… our smart phones. One option to track receipts is to use your phone’s camera to take pictures of receipts and then upload them to apps like Box.com or Evernote.
With these apps you can create a free account, download the app on your phone and then be ready to go. One of the best features of a Web-based service such as Box.com or Evernote is the ability to easily share folders with a third party, such as an accountant or tax professional.
For those business owners who prefer a more involved method of organization, the Shoeboxed app will scan and categorize receipts by amount, vendor and payment method, and then file them according to tax category. The app also creates expense reports and tracks mileage, and it also has a very useful business card function.
Some of these apps have platforms, which work with many of the bigger online tax and accounting service providers and can essentially merge with these platforms when it comes time to transfer the essential tax data.
Also, some of these accounts can be shared with your accountant or used to create reports that can be exported to assist with the tax preparation process. Most, if not all, of the online financial management websites also offer complimentary apps for account holders. Some companies like Quickbooks Online and Expensify allow for tracking, tagging and categorizing expenses, which can be exported or shared at tax time.
So there you have it- with a little time and effort spent throughout the year, you can enjoy a peaceful tax time and feel confident that you captured every available business deduction on your tax return, which will ensure that you do not overpay on your taxes- Yay You!!
With over 14 years of Accounting and Tax experience, Andrea Jenson has worked with companies large and small, public and private in a myriad of industries. Andrea currently owns a virtual boutique bookkeeping business that serves Coaches, Speakers and Heart Centered Entrepreneurs. She provides real-time accounting data to educated business owners who know the importance of having accurate, timely financial reports to be able to better run, grow and build their empires.
Connect with Andrea on her Facebook page Jenson Strategic Tax and Bookeeping.